Waste Management (WM): First Take: 2Q beat on margins; guidance maintained as stronger margins offset a softer volume outlook

Research evidence excerpt

Waste Management (WM): First Take: 2Q beat on margins; guidance maintained as stronger margins offset a softer volume outlook

ial returns. Multiple is based on a stock’s forward-looking P/E, P/B,

price/dividend (P/D), EV/EBITDA, EV/FCF and EV/Debt Adjusted Cash Flow (DACF) (for financial stocks, only P/E, P/B and P/D), with a higher percentile

indicating a stock trading at a higher multiple. The Integrated percentile is calculated as the average of the Growth percentile, Financial Returns

percentile and (100% - Multiple percentile).

Financial Returns and Multiple use the Goldman Sachs analyst forecasts at the fiscal year-end at least three quarters in the future. Growth uses inputs

for the fiscal year at least seven quarters in the future compared with the year at least three quarters in the future (on a per-share basis for all metrics).

For a more detailed description of how we calculate the GS Factor Profile, please contact your GS representative.

M&A Rank

Across our global coverage, we examine stocks using an M&A framework, considering both qualitative factors and quantitative factors (which may vary

across sectors and regions) to incorporate the potential that certain companies could be acquired. We then assign a M&A rank as a means of scoring

companies under our rated coverage from 1 to 3, with 1 representing high (30%-50%) probability of the company becoming an acquisition target, 2

representing medium (15%-30%) probability and 3 representing low (0%-15%) probability. For companies ranked 1 or 2, in line with our standard

departmental guidelines we incorporate an M&A component into our target price. M&A rank of 3 is considered immaterial and therefore does not

factor into our price target, and may or may not be discussed in research.

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