Waste Management’s DCF Stock Analysis

Here’s my assumptions for $WM ( ▲ 0.57% ) :

Risk Free Rate (10 Years Interest Rate Swap): 4.0113%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3%

Last 24 Months Beta: 0.24

Historical Data

Revenue growth in the last 10 years (CAGR): 5.46%

Earnings growth in the last 10 years (CAGR): 13.81%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 3.62%

Future Assumptions

End of Year FCF growth: 3.5%

Growth until end of 2026: 7%

Growth until end of 2034: 6%

Perpetual growth: 3.1%

Net Debt: -5.186B

Outstanding Stock Options Present Value Assumption: $0.193B

Restricted Stock Units Present Value Assumption: $0.296B

Stock Valuation based on these assumptions: $155

Last update 07/02/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Waste Management (WM) and I don’t plan to add a position in the coming days.