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    Clean Harbors (CLH) Stock May Be 32% Undervalued As Cash Flow Grows

    Simply Wall St·10/08/2026 12:37:28
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    Clean Harbors has turned a long run in its share price into a talking point for anyone tracking waste management and environmental services. With the stock now trading around US$315.54, the real question is whether the underlying cash flows are strong enough to justify that level.

    • Over the past 5 years, Clean Harbors has delivered a total return of 194.4%, which puts real pressure on the company’s cash flows to support a much higher equity valuation than in the past.
    • The business model leans heavily on hazardous waste processing and related services, so investors are effectively betting that future contracts, pricing, and utilization will keep converting into robust and relatively steady cash generation.
    • If you'd rather focus on earnings, this one's for you. See why Clean Harbors's 37.9x P/E tells a different valuation story.

    The issue now is whether those projected cash flows, when run through a Discounted Cash Flow (DCF) lens, line up with where Clean Harbors shares trade today.

    If you want more context around Clean Harbors and its cash flow driven valuation, compare it with other companies using the 29 high quality undervalued stocks

    Is Clean Harbors a Bargain on Cash Flow?

    The Discounted Cash Flow (DCF) approach here looks at what Clean Harbors could return to shareholders over time rather than just where the stock trades today. Latest twelve month free cash flow sits at about $441.6 million, which is the base the model uses before layering on expectations for future contracts and pricing in waste services.

    Analyst and model estimates project growing free cash flow through the next decade, with values in the $600 million to more than $1b range in later years. Those future figures are discounted back to today in dollar terms and then compared with the current share price of $315.54 to see whether the market is asking a higher or lower multiple of those projected cash flows. The outcome of this DCF workup suggests Clean Harbors' estimated intrinsic value is substantially above the current share price, which means the valuation model points to stronger cash generation than the market price currently reflects. Find out what Clean Harbors could be worth using our Discounted Cash Flow (DCF) estimate.

    The Clean Harbors Narrative: What Would Justify Today's Price?

    Simply Wall St Narratives pick up where that DCF puzzle on Clean Harbors' valuation leaves off. They spell out which paths for growth, margins, and earnings would need to play out for the stock to be worth materially more or less than it is today. Each scenario anchors a fair value to a particular mix of potential catalysts and risks so you can later see which version of Clean Harbors' story is closest to reality on the Community page.

    One of the top community narratives on Clean Harbors: 10% undervalued

    "Clean Harbors owns one of the most difficult-to-replicate infrastructure networks required to do that..."

    Discover why this Narrative puts Clean Harbors at 10% undervalued.

    One more thing about Clean Harbors that deserves your attention

    Valuation tells only part of the Clean Harbors story, since the research checks have also flagged specific issues that might change how you weigh the opportunity. Take a closer look at 2 warning signs before settling on a valuation.

    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.