PEG Ratio

The PEG ratio, or price-to-earnings-to-growth ratio, measures a stock’s current price relative to its earnings growth rate — a lower number generally means better value for the expected growth.

At 2.40x, WM’s PEG is far above the sector median of 0.94x, placing it in the 77th percentile among peers, indicating the market prices WM at a premium versus its growth prospects relative to its sector. Trend data are limited: year-over-year change is not available, but the quarter-over-quarter change shows a decline of 2.0% from 2.45x to 2.40x. The combination of a high PEG value and a modest downward quarterly move suggests the stock remains relatively expensive compared with its growth, though the slight improvement points to a possible easing of that valuation pressure. This metric does not directly contradict the overall NEUTRAL verdict, as the elevated PEG supports caution, while the neutral stance likely reflects off-setting factors such as the company’s defensive business profile.

Frequently Asked Questions

Closest Sector Peers