Republic Services (RSG) Could Be 10% Undervalued As Valuation Questions Build

Republic Services (RSG) drew fresh attention after recent share performance data showed the stock down about 0.4% over the past day and roughly 1% over the past week, despite modest gains over the past month and over the past 3 months.

At a share price of $218.93, Republic Services has seen short term momentum cool slightly, with the 7 day share price return modestly lower. However, the 3 month share price return of 6.83% and 3 year total shareholder return of 53.80% point to a longer record of gains.

Compare Republic Services’ recent pullback with a curated group of resilient peers by screening for 30 resilient stocks with low risk scores, which combine steadier returns with stronger risk profiles.

Republic Services is slipping slightly after a long run of gains, which leaves you with a simple fork in the road. Is this modest pullback enough of an entry, or does patience make more sense once you line it up against valuation?

Most Popular Narrative: 10% Undervalued

On Simply Wall St's most followed narrative, Republic Services screens as undervalued, with a fair value estimate of about $243.58 against the latest close of $218.93. This comparison puts the current share price at a discount when that long term view is factored in.

Sustainability efforts such as the development of Polymer Centers and the Blue Polymers joint venture could drive future revenue growth by enhancing plastic circularity and decarbonization. These operations are expected to contribute to earnings starting in the second half of 2025.

See why 20 investors see Republic Services as 10% undervalued.

Result: Fair Value of $243.58 (UNDERVALUED)

Still, Republic Services faces headwinds if organic volumes stay weak or landfill capacity tightens. This could pressure future earnings assumptions that sit behind this undervalued story.

Find out about the key risks to this Republic Services narrative.

Another View: Republic Services On Earnings Multiples

There is a catch. Republic Services trades on a P/E of 30.7x while the US Commercial Services industry averages 19.2x, and the fair ratio for the stock is estimated at 24.4x. That gap points to valuation risk if sentiment cools and investors start paying closer to the fair ratio.

To see how that price tag squares with the underlying numbers, and whether the current premium still looks justified as conditions change, See what the numbers say about this price — find out in our valuation breakdown..

Next Steps

Mixed signals on Republic Services can feel unclear, so consider reviewing the data while it is current and pressure test it yourself against the 3 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Republic Services?

If Republic Services has you thinking more broadly about how you build your portfolio, it makes sense to widen the lens and pressure test a few alternative angles.

• Target dependable cash generators by scanning for companies with higher yield potential and sturdier payouts through the 6 dividend fortresses.
• Hunt for mispriced opportunities by focusing on companies flagged as having solid fundamentals relative to their market value using the 29 high quality undervalued stocks.
• Strengthen your downside protection by filtering for businesses with healthier balance sheets and steadier finances via the list of solid balance sheet and fundamentals (23 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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