US Equities Analysis

RSG — Republic Services

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 20.2%
Profit Margins 12.99%
Return on Equity 18.35%
Return on Assets 6.18%
Free Float 0.31B
Dividend Yield 1.16%
Short Int % Utilisation 1.84%

2.2 Growth

Metric Value
Revenue Growth 2.6%
Free Cash Flow 1.81B
EBITDA 15.28 (Ratio)
Enterprise Value 79.38B
EV/Revenue 4.75
EV/EBITDA 15.28

Revenue growth of 2.6% suggests mature or challenged top-line momentum.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -5.08%
Risk / Std Dev (Ann.)* 19.05%
1-Year Price Return* -6.73%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $214.71
52-Week Range $196.41 – $238.62
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $16.59B
Prior annual revenue $16.03B
EBIT $3.17B
Tax rate 17.50%
NOPAT = EBIT × (1 − tax rate) $2.61B
Forecast start-growth basis 3.49%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $2.61B
Add: depreciation & amortisation $1.93B
Less: capital expenditure -$1.89B
Less/(add): working-capital cash-flow movement -$235.00M
Current unlevered FCFF $2.42B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 3.49% $2.70B $2.00B -$1.95B -$243.19M $2.50B $2.43B
2 3.24% $2.79B $2.06B -$2.03B -$251.07M $2.57B $2.35B
3 2.99% $2.88B $2.12B -$2.10B -$258.59M $2.64B $2.27B
4 2.75% $2.95B $2.18B -$2.17B -$265.69M $2.70B $2.18B
5 2.50% $3.03B $2.23B -$2.23B -$272.33M $2.76B $2.09B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.40
Cost of equity 6.89%
Pre-tax cost of debt 4.29%
WACC 6.32%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $74.03B
Implied terminal EV / EBITDA 12.54x
Terminal value as % of enterprise value 82.81%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $11.31B
Present value of terminal value $54.50B
Indicated enterprise value $65.82B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $65.82B
Less: gross interest-bearing debt $13.81B
Add: cash and equivalents $76.00M
Add: affiliate investments $0.00
Less: minority interests $1.00M
Indicated common equity value $52.09B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 312,200,000.00
Share-count basis reported diluted weighted-average shares
Current market price $218.29
DCF indicative value per share $166.84
Indicative value vs. market price -23.57%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range review required
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:47:59.822311 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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