• If you are looking at Clean Harbors and wondering whether the current share price still offers value, this article will help you unpack what the market might be baking in.
• The stock last closed at US$284.69, with returns of 4.0% over 7 days, 9.7% over 30 days, 16.9% year to date, 30.6% over 1 year, 115.4% over 3 years and 234.3% over 5 years. This naturally raises questions about what is already reflected in the price.
• Recent coverage around Clean Harbors has focused on its position in environmental and industrial services, along with how its waste management and safety offerings fit into long term demand for compliance focused solutions. This kind of attention helps frame why the stock has been on many investors' watchlists and gives context for the returns you are seeing today.
• Our valuation model currently gives Clean Harbors a score of 2 out of 6. This means it screens as undervalued on 2 of the 6 checks we apply. Next we will walk through those methods in plain language and then finish with a broader way to think about valuation that goes beyond the usual ratios.

Clean Harbors scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Clean Harbors Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes estimates of the cash a business might generate in the future and then discounts those back to today, to get an estimated value per share in today’s dollars.

For Clean Harbors, the model uses last twelve months free cash flow of about $415.9 million as a starting point. Analysts provide specific free cash flow projections out to 2030, with estimates such as $482.8 million in 2026, $571.1 million in 2027, and $813 million by 2030, all in $. Beyond the explicit analyst horizon, Simply Wall St extends the forecast using its own growth assumptions within a 2 Stage Free Cash Flow to Equity framework.

After discounting all those projected cash flows back to today, the model arrives at an estimated intrinsic value of about $383.29 per share, compared with the recent share price of $284.69. This comparison suggests the stock might be trading at roughly a 25.7% discount to this DCF estimate for investors who place confidence in these cash flow assumptions.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Clean Harbors is undervalued by 25.7%. Track this in your watchlist or portfolio, or discover 54 more high quality undervalued stocks.

Approach 2: Clean Harbors Price vs Earnings

For a profitable company like Clean Harbors, the P/E ratio is a useful way to connect what you are paying per share with the earnings the business is currently generating. Investors usually accept a higher P/E when they expect stronger growth or see less risk, and a lower P/E when they expect slower growth or higher risk.

Clean Harbors currently trades on a P/E of 38.53x. That sits above both the Commercial Services industry average of 24.78x and the peer group average of 36.59x. This suggests the market is willing to pay a relatively higher price for each dollar of earnings compared with many similar companies.

Simply Wall St also calculates a proprietary “Fair Ratio” of 26.81x. This is the P/E level that would typically line up with Clean Harbors' characteristics, including its earnings growth profile, industry, profit margins, market cap and risk factors. Because it blends these company specific inputs, the Fair Ratio can be more tailored than a simple comparison with peers or the broad industry, which may differ on size, risk or profitability. Compared with this Fair Ratio, the current 38.53x P/E screens as higher, suggesting the shares may be trading above that modelled level.

Result: OVERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies.

Upgrade Your Decision Making: Choose your Clean Harbors Narrative

Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St’s Community page you can use Narratives to write your own Clean Harbors story, link that story to your assumptions for future revenue, earnings and margins, turn those assumptions into a Fair Value, then compare that Fair Value with the current price. The platform continuously updates your Narrative as new news or earnings arrive. One investor might build a Narrative that lines up with a higher Fair Value near US$305 based on PFAS contracts and buybacks. Another might lean closer to a lower Fair Value around US$240 if they focus more on risks such as regulation, technology and capital intensity.

Do you think there's more to the story for Clean Harbors? Head over to our Community to see what others are saying!

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.