Waste Management Inc
NYSE:WM

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Waste Management Inc
NYSE:WM
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Price: 214.24 USD 0.12% Market Closed
Market Cap: 86B USD
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DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Nov 5, 2024.

Estimated DCF Value of one WM stock is 134.44 USD. Compared to the current market price of 214.24 USD, the stock is Overvalued by 37%.

WM DCF Value
Base Case
134.44 USD
Overvaluation 37%
DCF Value
Price
Worst Case
Base Case
Best Case
134.44
DCF Value
Worst Case
Base Case
Best Case
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DCF Value: 134.44 USD

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 14.9B USD. The present value of the terminal value is 39.1B USD. The total present value equals 54B USD.
Forecast Period
Years
Discount Rate
%
Show All DCF Settings
Terminal Growth
%
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 54B USD
Equity Value 54B USD
/ Shares Outstanding 401.3m
WM DCF Value 134.44 USD
Overvalued by 37%

You are using the equity valuation model. In this approach, further calculations for converting firm value to equity value are not required. The present value, obtained in the present value calculation block, already represents the equity value.

The DCF value per share is derived by dividing the present value by the number of shares:

Present Value
54B USD
/
Number of Shares
401.3m
=
DCF Value
134.44 USD

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
23.6B 29.2B
Net Income
3.2B 4.1B

See Also

Discover More

What is the DCF value of one WM stock?

Estimated DCF Value of one WM stock is 134.44 USD. Compared to the current market price of 214.24 USD, the stock is Overvalued by 37%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Waste Management Inc's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 54B USD.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 134.44 USD per share.

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