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Waste Connections Inc
TSX:WCN

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Waste Connections Inc
TSX:WCN
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Price: 222.95 CAD -0.46%
Market Cap: CA$57.1B

EV/FCFF

45.4
Current
7%
More Expensive
vs 3-y average of 42.3

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
45.4
=
Enterprise Value
CA$70B
/
Free Cash Flow to Firm
$1.1B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
45.4
=
Enterprise Value
CA$70B
/
Free Cash Flow to Firm
$1.1B

Valuation Scenarios

Waste Connections Inc is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (42.3), the stock would be worth CA$207.95 (7% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-55%
Maximum Upside
No Upside Scenarios
Average Downside
30%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 45.4 CA$222.95
0%
3-Year Average 42.3 CA$207.95
-7%
5-Year Average 41.8 CA$205.39
-8%
Industry Average 22.7 CA$111.68
-50%
Country Average 20.4 CA$100.34
-55%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
CA
Waste Connections Inc
TSX:WCN
56.9B CAD 45.4 40.5
US
Waste Management Inc
NYSE:WM
92.8B USD 41.2 34.7
US
Republic Services Inc
NYSE:RSG
64.2B USD 31.9 30
US
Rollins Inc
NYSE:ROL
26.6B USD 44 50.6
US
Veralto Corp
NYSE:VLTO
22.2B USD 21.4 23.4
UK
Rentokil Initial PLC
LSE:RTO
12.5B GBP 21.9 26.5
US
Clean Harbors Inc
NYSE:CLH
16.2B USD 40.8 41.5
CA
GFL Environmental Inc
TSX:GFL
19.8B CAD 152.7 5
CN
Spic Yuanda Environmental Protection Co Ltd
SSE:600292
68B CNY -161.2 18 785.1
US
Tetra Tech Inc
NASDAQ:TTEK
8.3B USD 18.1 23.9
CN
Hui Lyu Ecological Technology Groups Co Ltd
SZSE:001267
42.3B CNY -195.1 480.6

Market Distribution

Higher than 79% of companies in Canada
Percentile
79th
Based on 1 610 companies
79th percentile
45.4
Low
0 — 13.1
Typical Range
13.1 — 33.5
High
33.5 —
Distribution Statistics
Canada
Min 0
30th Percentile 13.1
Median 20.4
70th Percentile 33.5
Max 22 577.3

Waste Connections Inc
Glance View

In the realm of waste management, where efficiency and sustainability meet, Waste Connections Inc. stands out with its robust business model and strategic positioning. Founded in 1997, this North American waste services company has grown through a blend of organic growth and strategic acquisitions. It predominantly operates in secondary markets—those midsize cities and rural areas often overlooked by larger competitors. This shrewd focus allows Waste Connections to minimize competition while maximizing market penetration. By offering comprehensive waste management services, which include collection, transfer, disposal, and recycling, the company ensures a steady stream of revenue, bolstered by long-term contracts with municipalities and commercial customers. The company is not merely a passive player in the waste industry; it's an essential cog in the wheel, transforming refuse into resources. Revenue generation for Waste Connections is further fortified by its vertical integration. By owning the entire chain of operations from pick-up to processing, the company efficiently controls costs and enhances service quality. This control not only ensures better margins but also fosters customer loyalty by providing reliable and tailored waste solutions. Moreover, Waste Connections is committed to environmental stewardship, investing in technology to optimize landfill gas capture and advancing efforts in recycling and renewable energy initiatives, which positions the company favorably in an era focused on sustainability. The blend of strategic location focus, vertical integration, and environmental initiatives underscores Waste Connections Inc.'s narrative as a pragmatic industry leader that balances business acumen with environmental responsibility to maintain its growth trajectory.

WCN Intrinsic Value
163.01 CAD
Overvaluation 27%
Intrinsic Value
Price CA$222.95
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