Is waste management undervalued overvalued what’s going on with it?

**Waste Management's valuation appears complex, with indications of both undervaluation and market performance concerns**:

1. **Financial Metrics Suggest Undervaluation**:
- Waste Management's Price to Book Ratio is 11.08, which is lower than the industry average, indicating potential undervaluation.
- The company's P/E (TTM) ratio of 32.48 suggests a relatively high growth expectation from the market.
- The 5-Year P/E (TTM) shows a range of 27.24 to 36.22, with the latest figure at 32.48, which is within the historical norms, not indicating overvaluation.

|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|code|market_code|
|---|---|---|---|---|---|---|---|
|WM.N|Waste Management|20240808|32.48063|3.9120690691837896|11.080960557771222|WM|169|

|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|code|market_code|
|---|---|---|---|---|---|---|---|
|WM.N|Waste Management|20230804|28.42681|||WM|169|
|WM.N|Waste Management|20230807|28.572107|||WM|169|
|WM.N|Waste Management|20230808|28.315179|||WM|169|
|WM.N|Waste Management|20230809|28.616405|||WM|169|
|WM.N|Waste Management|20230810|28.320495|||WM|169|
|WM.N|Waste Management|20230811|28.517178|||WM|169|
|WM.N|Waste Management|20230814|28.479967|||WM|169|
|WM.N|Waste Management|20230815|28.168111|||WM|169|
|WM.N|Waste Management|20230816|28.354161|||WM|169|
|WM.N|Waste Management|20230817|28.083059|||WM|169|

2. **Market Performance and Growth Metrics**:
- Waste Management's net profit margin is 13.13%, which is healthy and could support a higher valuation.
- The company's dividend yield is 1.41%, which is attractive for income-focused investors.
- The stock has seen a net fund flow of $416,004, indicating investor interest and potential market confidence.
- The company's EPS has grown 19% annually over three years, which is a positive sign for future earnings potential.

|Ticker|Name|Date|Total Revenue year-on-year growth rate|Dividend Yield (TTM)|Net Profit Margin|code|market_code|
|---|---|---|---|---|---|---|---|
|WM.N|Waste Management|20240630|5.528423520218793||13.1332|WM|169|
|WM.N|Waste Management|20240808||1.408450704225352||WM|169|

3. **Valuation Analysis and Criticisms**:
- A DCF analysis by Simply Wall St estimates a fair value of US$264 for Waste Management, with the current price indicating a 23% undervaluation.
- However, some analysts argue that the company's valuation is out of sync with its mature industry and market expectations.
- There are concerns about the sustainability of high growth rates and the potential for future valuation adjustments.
4. **Investor Sentiment and Insider Activity**:
- Insider ownership of Waste Management shares is significant, indicating confidence in the company's future.
- The company's stable EBIT margins and revenue growth are encouraging signs for long-term performance.
5. **Conclusion**: Waste Management's valuation appears complex, with indications of both undervaluation and market performance concerns. The company's strong financial metrics and growth potential suggest a compelling investment case, but investors should also consider the industry's maturity and the potential for future valuation adjustments.