American Water Works Company, Inc.

WBAG:AWK Stock Report

Market Cap: €23.5b

American Water Works Company Valuation

Is AWK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AWK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AWK (€120.1) is trading above our estimate of fair value (€100.99)

Significantly Below Fair Value: AWK is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AWK?

Key metric: As AWK is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AWK. This is calculated by dividing AWK's market cap by their current earnings.
What is AWK's PE Ratio?
PE Ratio25x
EarningsUS$983.00m
Market CapUS$24.54b

Price to Earnings Ratio vs Peers

How does AWK's PE Ratio compare to its peers?

The above table shows the PE ratio for AWK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.4x
VER VERBUND
14.4x-11.2%€24.2b
EVN EVN
8x-4.6%€3.8b
WTRG Essential Utilities
18.3x7.0%US$10.0b
SVT Severn Trent
32.8x24.3%UK£7.6b
AWK American Water Works Company
25x7.9%€24.5b

Price-To-Earnings vs Peers: AWK is expensive based on its Price-To-Earnings Ratio (25x) compared to the peer average (18.4x).

Price to Earnings Ratio vs Industry

How does AWK's PE Ratio compare vs other companies in the Global Water Utilities Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AWK 25.0xIndustry Avg. 16.8xNo. of Companies11PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AWK is expensive based on its Price-To-Earnings Ratio (25x) compared to the Global Water Utilities industry average (16.8x).

Price to Earnings Ratio vs Fair Ratio

What is AWK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AWK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25x
Fair PE Ratio13.2x

Price-To-Earnings vs Fair Ratio: AWK is expensive based on its Price-To-Earnings Ratio (25x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AWK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€120.10
€134.90
+12.3%
8.6%€157.18€118.84n/a12
Dec ’25€130.10
€135.64
+4.3%
8.6%€156.46€118.30n/a12
Nov ’25€127.15
€131.79
+3.6%
7.9%€150.78€114.01n/a12
Oct ’25€132.75
€129.37
-2.5%
7.0%€146.75€117.22n/a12
Sep ’25€128.65
€130.24
+1.2%
7.2%€147.40€117.74n/a11
Aug ’25€134.50
€129.82
-3.5%
6.2%€147.35€116.76n/a11
Jul ’25€120.35
€128.12
+6.5%
7.4%€148.51€116.75n/a11
Jun ’25€119.50
€128.48
+7.5%
8.1%€147.58€114.17n/a11
May ’25€114.30
€128.07
+12.0%
8.8%€148.57€114.93n/a11
Apr ’25€112.60
€126.70
+12.5%
8.2%€146.45€113.30n/a12
Mar ’25€109.60
€128.32
+17.1%
7.4%€146.73€117.20n/a12
Feb ’25€114.20
€134.63
+17.9%
9.8%€155.29€117.62n/a13
Jan ’25€121.20
€134.87
+11.3%
10.1%€153.08€114.13n/a13
Dec ’24€121.60
€135.97
+11.8%
10.1%€154.94€115.52€130.1013
Nov ’24€112.20
€138.73
+23.6%
11.1%€159.91€119.22€127.1513
Oct ’24€116.40
€144.32
+24.0%
7.0%€157.54€127.71€132.7511
Sep ’24€128.00
€144.09
+12.6%
8.0%€166.55€126.77€128.6511
Aug ’24€133.80
€143.24
+7.1%
9.5%€168.68€124.00€134.5011
Jul ’24€129.20
€144.38
+11.7%
9.0%€168.76€124.06€120.3511
Jun ’24€133.40
€146.17
+9.6%
9.1%€170.46€123.47€119.5011
May ’24€134.40
€143.80
+7.0%
9.1%€167.89€121.61€114.3011
Apr ’24€134.52
€146.03
+8.6%
10.1%€173.47€125.65€112.6011
Mar ’24€130.18
€148.10
+13.8%
10.1%€173.51€125.68€109.6011
Feb ’24€143.36
€144.90
+1.1%
10.3%€168.41€120.16€114.2011
Jan ’24€144.68
€147.39
+1.9%
11.6%€175.17€124.32€121.2011
Dec ’23€146.30
€147.92
+1.1%
11.2%€176.70€125.40€121.6012

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 04:53
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

American Water Works Company, Inc. is covered by 40 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
Finbarr MacCarthyAtlantic Equities LLP
Benjamin KalloBaird