What is Waste Management, Inc. (WM)'s PEG ratio?

Waste Management, Inc. (WM) has a PEG ratio of 2.32 (Potentially Overvalued), based on a PE ratio of 31.7 and expected EPS growth of 13.7% (5-Year EPS CAGR).

Is WM undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 2.32, Waste Management, Inc. (WM) screens as "Potentially Overvalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/WM.

Waste Management, Inc. (WM) PEG Ratio

Potentially Overvalued

PE ratio relative to earnings growth — is the valuation justified?

2.32

PEG Ratio

2.32

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$223.58

TTM EPS

$7.06

P/E Ratio

31.67

Growth Rate

13.7%

5-Year EPS CAGR

Sector

Industrials

Waste Management

Calculated

8/19/2026

11:44:40 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

1.31

25th Percentile

1.04

75th Percentile

1.73

WM PEG (2.32) vs Industry Median (1.31): 77% premium

Symbol	Company	PEG	P/E	Growth	vs WM
UPS	United Parcel Service, Inc.	0.60	18.9	31.8%	-74%
WCN	Waste Connections, Inc.	1.04	40.1	38.6%	-55%
CLH	Clean Harbors, Inc.	1.57	38.8	24.6%	-32%
RSG	Republic Services, Inc.	1.73	30.7	17.8%	-25%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Waste Management, Inc. (WM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on WM

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Waste Management, Inc. (WM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on WM

Compare with peers

Explore