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Waste Management (Waste Management) Cyclically Adjusted Price-to-FCF : (As of Apr. 27, 2024)


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What is Waste Management Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Waste Management Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Waste Management's Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Chart

Waste Management Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.21 33.64 41.27 34.39 37.05

Waste Management Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial 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 35.11 36.62 31.70 37.05 -

Competitive Comparison of Waste Management's Cyclically Adjusted Price-to-FCF

For the Waste Management subindustry, Waste Management's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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's Cyclically Adjusted Price-to-FCF Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Waste Management's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Waste Management's Cyclically Adjusted Price-to-FCF falls into.



Waste Management Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Waste Management's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Waste Management's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=1.732/129.4194*129.4194
=1.732

Current CPI (Mar. 2024) = 129.4194.

Waste Management Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.741 100.560 0.954
201409 0.787 100.428 1.014
201412 0.324 99.070 0.423
201503 0.580 99.621 0.753
201506 1.135 100.684 1.459
201509 0.711 100.392 0.917
201512 0.415 99.792 0.538
201603 0.925 100.470 1.192
201606 1.007 101.688 1.282
201609 0.954 101.861 1.212
201612 0.841 101.863 1.069
201703 0.878 102.862 1.105
201706 1.157 103.349 1.449
201709 1.141 104.136 1.418
201712 0.603 104.011 0.750
201803 0.939 105.290 1.154
201806 1.247 106.317 1.518
201809 1.091 106.507 1.326
201812 1.067 105.998 1.303
201903 0.981 107.251 1.184
201906 1.011 108.070 1.211
201909 1.097 108.329 1.311
201912 1.720 108.420 2.053
202003 0.718 108.902 0.853
202006 0.991 108.767 1.179
202009 1.616 109.815 1.904
202012 0.844 109.897 0.994
202103 2.003 111.754 2.320
202106 1.527 114.631 1.724
202109 1.706 115.734 1.908
202112 0.516 117.630 0.568
202203 2.011 121.301 2.146
202206 1.194 125.017 1.236
202209 1.026 125.227 1.060
202212 0.455 125.222 0.470
202303 0.939 127.348 0.954
202306 1.251 128.729 1.258
202309 1.454 129.860 1.449
202312 0.840 129.419 0.840
202403 1.732 129.419 1.732

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Waste Management  (NYSE:WM) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Waste Management Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Waste Management's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Waste Management (Waste Management) Business Description

Address
800 Capitol Street, Suite 3000, Houston, TX, USA, 77002
WM ranks as the largest integrated provider of traditional solid waste services in the United States, operating 259 active landfills and about 337 transfer stations. The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.
Executives
Charles C Boettcher officer: Sr VP Chief Legal Officer 800 CAPITOL STREET 3000, HOUSTON TX 77002
Fish James C Jr officer: SVP, Eastern Group 800 CAPITOL STREET 3000, HOUSTON TX 77002
John C Pope director 810 S. RIDGE RD, LAKE FOREST IL 60045
John A. Carroll officer: VP & Chief Accounting Officer 800 CAPITOL STREET 3000, HOUSTON TX 77002
Tara J. Hmmer officer: SVP Operat Safety Envir Compl 800 CAPITOL STREET 3000, HOUSTON X1 77002
Michael J. Watson officer: Sr. VP-Chief Customer Officer 800 CAPITOL STREET 3000, HOUSTON TX 77002
Christopher P. Desantis officer: SVP Operations - East 800 CAPITOL STREET 3000, HOUSTON TX 77002
Bruce E. Chinn director 800 CAPITOL STREET 3000, HOUSTON TX 77002
John J Morris officer: Chief Strategy Officer 800 CAPITOL STREET 3000, HOUSTON TX 77002
Devina A Rankin officer: VP & Treasurer 800 CAPITOL STREET 3000, HOUSTON TX 77002
Rafael Carrasco officer: SVP Operations 800 CAPITOL STREET 3000, HOUSTON TX 77002
Kelly C. Rooney officer: SVP Chief People Officer 800 CAPITOL STREET #3000, HOUSTON TX 77002
Leslie K Nagy officer: VP & Chief Accounting Officer 5 GREENWAY PLAZA, SUITE 100, HOUSTON TX 77046
Donald J Smith officer: Sr. VP - Operations 800 CAPITOL STREET 3000, HOUSTON TX 77002
Nikolaj H Sjoqvist officer: SVP, Chief Digital Officer 800 CAPITOL STREET 3000, HOUSTON X1 77002