Waste Management

Methodology

Waste Management's fair value calculation works well given the company's consistent earnings growth driven by volume expansion, pricing power from contracted waste collection, and internalization benefits from owning disposal assets. The method captures Waste Management's position as the largest integrated waste services provider with predictable cash flows from essential municipal and commercial services. Fair value estimates are reliable because the business model provides steady revenue with inflation-linked pricing and long-term disposal contracts.

Methodology

Waste Management typically commands moderate to premium PEG ratios reflecting its defensive positioning in essential waste services with strong competitive moats from disposal site ownership and route density. The PEG framework works well for Waste Management because growth rates are predictable and driven by volume growth plus pricing, creating steady earnings progression. Comparing Waste Management's PEG to other waste haulers highlights the premium investors place on integrated operations and disposal asset ownership.

Methodology

Waste Management pays a meaningful dividend reflecting the cash-generative nature of its integrated waste collection and disposal business, making PEGY particularly relevant for total return analysis. The combination of steady low-to-mid-single-digit growth and an attractive dividend makes PEGY useful, as total return includes both capital appreciation and income. For income-focused investors, PEGY captures Waste Management's balanced approach between modest growth investment and consistent cash returns to shareholders.