Clean Harbors (CLH) is back in focus after reporting second quarter 2026 earnings and revenue that exceeded expectations, prompting management to lift full year adjusted EBITDA and free cash flow outlooks.
Clean Harbors shares trade at $310.71, with the stock down 4.8% on a 1 month share price basis but still up 10.6% over 3 months and 27.6% year to date, while 1 year total shareholder return of 28.3% and 5 year total shareholder return above 200% point to momentum that has broadly been building over time.
Scan other companies riding similar waste, recycling and industrial services themes by reviewing our hand picked list of solid balance sheet and fundamentals (51 results) alongside Clean Harbors.
The stock now trades about 16% below the average analyst target and at a steeper 33% discount to one fair value estimate, even after strong guidance. Is the market prudently cautious on Clean Harbors, or overly conservative on the upside potential?
Most Popular Narrative: 13.4% Undervalued
Clean Harbors is trading at $310.71 compared with a widely followed fair value narrative of about $358.93, which frames the stock as modestly undervalued and driven by specific growth projects and capital plans.
The company's ongoing investment in facility expansion (e.g., Kimball, Phoenix hub), logistics optimization, and advanced technology is driving operating leverage, improving route density, and supporting margin expansion as network scale and efficiency increase.
Read the complete narrative. Read the complete narrative.
Want to see why this narrative supports a higher fair value for Clean Harbors? It leans on steady revenue expansion, fatter margins, and a richer earnings multiple. Curious which long term assumptions really move the valuation needle here? The full narrative breaks down those numbers in detail.
Result: Fair Value of $358.93 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you still need to factor in possible headwinds for Clean Harbors, including tighter environmental regulations on disposal facilities and new waste technologies that could reduce demand for legacy services.
Find out about the key risks to this Clean Harbors narrative.
Another View: What Multiples Say About Clean Harbors
While the DCF based fair value points to Clean Harbors trading below intrinsic value, the current P/E of 37.4x paints a different picture. It is much higher than the estimated fair ratio of 21.6x, the Commercial Services industry at 18.3x, and the peer average of 29.5x.
That gap suggests investors are already paying a premium for Clean Harbors, which can amplify both upside and downside if expectations shift. Do you view this premium as justified, or as valuation risk that needs a margin of safety?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Does the mix of optimism and caution around Clean Harbors feel balanced to you, or skewed one way? Act quickly and review both sides of the story by checking the 3 key rewards and 2 important warning signs
Looking for more investment ideas beyond Clean Harbors?
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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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