Waste management stock price has shown low beta volatility compared

Waste Management stock price has shown low beta volatility compared to the broader market, making it attractive for risk-averse investors seeking stable returns in environmental services. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Get this delivered to your inbox, and more info about our products and services. Waste Management stock price saw a 0.8% gain in pre-market trading after the firm announced a new long-term municipal waste contract worth $500M, expected to boost revenue by 3% annually.