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Compare waste companies using the same peer set, valuation date, earnings period, and metric definitions. Waste Management (WM), Republic Services (RSG), and Waste Connections (WCN) are a practical starting group, but differences in business mix mean their headline multiples, margins, and leverage ratios are not automatically comparable. Pair valuation with operating margins, cash flow after capital spending, and debt-service capacity; no single ratio establishes whether a company is fairly valued or financially safe.
Choose peers whose businesses are genuinely comparable
WM, RSG, and WCN overlap in North American solid-waste collection, transfer, and disposal, making them a useful initial peer set. Before comparing results, read each company’s business and segment descriptions: revenue sources and operating risks can differ even when all three are called waste companies. Their filings provide the primary detail: WM’s 2025 Form 10-K, Republic Services’ 2025 Form 10-K, and Waste Connections’ 2025 Form 10-K.
WCN describes collection, transfer and disposal as well as rail-based intermodal operations, resource recovery, and exploration-and-production (E&P) waste treatment and disposal. WM and RSG also have their own segment and service mixes. Record meaningful differences in landfill ownership, recycling, renewable energy, healthcare or environmental services, and special-waste exposure before interpreting a valuation premium or margin gap.
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Make valuation multiples comparable
Use one date and one EBITDA period
Enterprise value (EV) is generally equity market value plus debt and other debt-like claims, less cash and cash equivalents. Choose and apply a consistent convention for leases, minority interests, and preferred securities if relevant. Divide EV by the same type of EBITDA for every company, and state whether it is last-twelve-months (LTM), last fiscal year, or next-twelve-months (NTM), and whether EBITDA is reported or adjusted.
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EV/EBITDA is date-sensitive: share prices, debt, cash, and the chosen EBITDA period all affect the result. Calculate market-based multiples from market data for a clearly stated date, then pair them with filings for the earnings figures and definitions. Truist’s July 2024 Waste & Environmental Services Market Update shows historical LTM and NTM multiples and LTM margin figures for a selected peer group. It is historical context, not current valuation data.
Interpret the multiple, rather than ranking it in isolation
A lower EV/EBITDA multiple is not automatically a bargain. It may reflect slower growth, greater leverage, lower-quality assets, more volatile business lines, or differences in accounting and adjustments. A premium multiple also needs support, such as durable pricing, growth, margins, or cash generation demonstrated by company disclosures. Treat the multiple as a starting question about expectations and risk—not as a buy-or-sell verdict.
Compare margins without mixing definitions
Build a margin bridge
Start with GAAP operating margin, then examine adjusted EBITDA and the reconciliation to the company’s reported results. Trace revenue growth, pricing and volume where disclosed, operating costs, depreciation and amortization, corporate or segment allocations, and adjustments. Review several years and the latest quarter to distinguish recurring operating changes from acquisitions, integration, accounting changes, unusual items, or commodity effects. Separate organic growth from acquisition-driven growth when disclosures allow.
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- WCN reported a 33.0% adjusted EBITDA margin in 2025, up 250 basis points, in its 2025 annual report. This is a company-defined adjusted measure; review its definition and reconciliation before comparison. Waste Connections 2025 Annual Report.
- WM reported a 30.1% operating EBITDA margin in 2025 in its annual-results material. WM cited operating factors and headwinds associated with the Healthcare Solutions acquisition and the expiration of alternative-fuel tax credits; check the metric label and adjustments against peers’ definitions. WM 2025 annual results investor material.
These figures use labels and company definitions that are not established here as identical. Republic Services’ 2025 Form 10-K is a primary source for its disclosures, but the figures above do not provide a directly harmonized margin for all three companies.
Assess debt alongside cash flow and debt service
Collect the debt details behind leverage
Debt/EBITDA and net debt/EBITDA are useful only when the numerator, denominator, period, and adjustments are understood. Preserve each issuer’s own leverage definition, and calculate a normalized version on the same basis for peers. Alongside leverage, review gross debt, cash, maturities, interest expense, fixed- or floating-rate exposure where disclosed, liquidity, and capital expenditures.
- WCN reported year-end 2025 debt-to-EBITDA leverage of 2.75x, a company-defined measure. Check the non-GAAP disclosures and credit-agreement definitions in its 2025 Annual Report.
- WM reported a 3.1x leverage ratio in its 2025 annual-results material. Confirm the supporting filing’s definition and period before comparing it directly with another issuer’s ratio. WM 2025 annual results investor material.
Those company-reported figures are not necessarily calculated on the same basis, and neither alone establishes whether debt is manageable. Maturity timing, borrowing costs, liquidity, capital needs, and cash generation affect the ability to meet obligations.
Check cash conversion and committed uses
Waste operations require capital for assets such as landfills, fleets, and facilities. Compare operating cash flow less capital expenditure, noting working capital and acquisition spending where disclosed; distinguish maintenance from growth spending if the company provides that breakdown. EBITDA is not cash available to repay debt or distribute to shareholders.
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WM’s 2025 Form 10-K states: “We believe free cash flow gives investors useful insight into how we view our liquidity, but the use of free cash flow as a liquidity measure has material limitations because it excludes certain expenditures that are required or that we have committed to, such as declared dividend payments and debt service requirements.” Read the cash-flow statements and obligations alongside any non-GAAP free-cash-flow measure. WM 2025 Form 10-K.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Use a consistent comparison checklist
| Comparison axis | What to line up | Why it matters |
|---|---|---|
| Valuation | EV/EBITDA on the same market date and the same LTM, fiscal-year, or NTM basis; reported or adjusted EBITDA specified | Share prices and denominator choices change the multiple. |
| Margins | GAAP operating margin plus adjusted EBITDA margin with reconciliations | Adjustments and business mix can distort headline comparisons. |
| Debt | Gross and net debt, leverage definitions, maturities, interest burden, and liquidity | Similar leverage ratios can conceal different debt costs or refinancing needs. |
| Cash conversion | Operating cash flow less capital expenditure, with working capital and acquisition spending considered | Capital-intensive assets mean EBITDA is not equivalent to cash flow. |
| Business mix and growth | Collection and disposal, recycling, energy and special-waste exposure, acquisitions, pricing, and volume | Different revenue streams and growth sources shape risk and valuation. |
Use the same time periods and definitions across the table, and keep company-defined figures separate from normalized calculations. The result is a more useful comparison of operating quality, capital intensity, and financing risk than any single ratio can provide.
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