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GWRS: Higher Expected Margins And Revenue Will Balance Lower Future P/E

Update shared on 18 Feb 2026

Fair value Decreased 26%
Next
18 Mar
US$7.24
AnalystLowTarget's Fair Value
US$9.20
21.3% undervalued intrinsic discount
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1Y
-28.9%
7D
-0.7%

Analysts have reduced their price target on Global Water Resources to $9.60 from $13.00, as updated assumptions reflect higher projected revenue growth and profit margins alongside a lower expected future P/E multiple and a slightly higher discount rate.

Valuation Changes

  • Fair Value: reduced from $13.00 to $9.60, a significant cut to the implied share valuation.
  • Discount Rate: moved slightly higher from 6.78% to 6.98%, reflecting a modest increase in the required return used in the model.
  • Revenue Growth: raised from 6.53% to 11.93%, indicating higher projected dollar revenue expansion in the updated assumptions.
  • Net Profit Margin: lifted from 10.79% to 16.71%, pointing to meaningfully stronger expected dollar earnings relative to sales.
  • Future P/E: reduced from 73.74x to 29.84x, a large reset in the valuation multiple applied to projected earnings.

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