Waste Connections Inc
TSX:WCN
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EV/FCFF
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.
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.
Valuation Scenarios
If EV/FCFF returns to its 3-Year Average (42.3), the stock would be worth CA$207.95 (7% downside from current price).
| 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%
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| 5-Year Average | 41.8 | CA$205.39 |
-8%
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| 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
Peer Comparison
| 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 |
H
|
Hui Lyu Ecological Technology Groups Co Ltd
SZSE:001267
|
42.3B CNY | -195.1 | 480.6 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.1 |
| Median | 20.4 |
| 70th Percentile | 33.5 |
| Max | 22 577.3 |
Other Multiples
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.