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Waste Management PS Ratio

: 3.86 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Waste Management's share price is $175.29. Waste Management's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $45.40. Hence, Waste Management's PS Ratio for today is 3.86.

Warning Sign:

Waste Management Inc stock PS Ratio (=3.85) is close to 10-year high of 4.02

The historical rank and industry rank for Waste Management's PS Ratio or its related term are showing as below:

WM' s PS Ratio Range Over the Past 10 Years
Min: 1.07   Med: 2.31   Max: 4.02
Current: 3.86

During the past 13 years, Waste Management's highest PS Ratio was 4.02. The lowest was 1.07. And the median was 2.31.

WM's PS Ratio is ranked worse than
69.3% of 228 companies
in the Waste Management industry
Industry Median: 1.97 vs WM: 3.86

Waste Management's Revenue per Sharefor the three months ended in Jun. 2022 was $12.07. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $45.40.

Good Sign:

Waste Management Inc has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Waste Management was 16.70% per year. During the past 3 years, the average Revenue per Share Growth Rate was 7.10% per year. During the past 5 years, the average Revenue per Share Growth Rate was 5.80% per year. During the past 10 years, the average Revenue per Share Growth Rate was 3.50% per year.

During the past 13 years, Waste Management's highest 3-Year average Revenue per Share Growth Rate was 128.70% per year. The lowest was -35.20% per year. And the median was 5.00% per year.

Back to Basics: PS Ratio


Waste Management PS Ratio Historical Data

The historical data trend for Waste Management's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Waste Management Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.63 2.58 3.15 3.29 3.94

Waste Management Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PS Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.60 3.65 3.94 3.61 3.37

Competitive Comparison

For the Waste Management subindustry, Waste Management's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Waste Management PS Ratio Distribution

For the Waste Management industry and Industrials sector, Waste Management's PS Ratio distribution charts can be found below:

* The bar in red indicates where Waste Management's PS Ratio falls into.



Waste Management PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Waste Management's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=175.29/45.401
=3.86

Waste Management's Share Price of today is $175.29.
Waste Management's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $45.40.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Waste Management  (NYSE:WM) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Waste Management PS Ratio Related Terms

Thank you for viewing the detailed overview of Waste Management's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Waste Management Business Description

Waste Management logo
Address
800 Capitol Street, Suite 3000, Houston, TX, USA, 77002
Waste Management ranks as the largest integrated provider of traditional solid waste services in the United States, operating approximately 268 active landfills and about 350 transfer stations (includes acquired Advanced Disposal landfills and transfer stations). The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.
Executives
Carrasco Rafael officer: SVP Operations 800 CAPITOL STREET 3000 HOUSTON TX 77002
Sylvester Maryrose director C/O 3700 WEST JUNEAU AVENUE MILWAUKEE WI 53208
Menke Sean E director C/O IHS INC. 15 INVERNESS WAY EAST ENGLEWOOD CO 80112
Plummer William B director C/O UNITED RENTALS INC / DE 100 FIRST STAMFORD PL STE 700 STAMFORD CT 06902
Watson Michael J. officer: Sr. VP-Chief Customer Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Batchelor Steve officer: Sr. Vice President Operations 800 CAPITOL STREET 3000 HOUSTON TX 77002
Oates-forney Tamla officer: Sr VP and Chief HR Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Hmmer Tara J. officer: SVP Operat Safety Envir Compl 800 CAPITOL STREET 3000 HOUSTON X1 77002
Nagy Leslie K officer: VP & Chief Accounting Officer 5 GREENWAY PLAZA, SUITE 100 HOUSTON TX 77046
Sjoqvist Nikolaj H officer: SVP, Chief Digital Officer 800 CAPITOL STREET 3000 HOUSTON X1 77002
Boettcher Charles C officer: Sr VP Chief Legal Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Shade Darren K officer: VP & Chief Accounting Officer 1001 FANNIN HOUSTON TX 77002
Mazzarella Kathleen M director C/O GRAYBAR ELECTRIC CO., INC 34 N. MERAMEC AVENUE CLAYTON MO 63105
Gluski Andres director 4300 WILSON BOULEVARD ARLINGTON VA 22203
Holt Victoria M director PPG INDUSTRIES, INC. ONE PPG PLACE PITTSBURGH PA 15272

Waste Management Headlines

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