American Water Works Company, Inc.

WBAG:AWK Stock Report

Market Cap: €25.6b

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 (€132.1) is trading above our estimate of fair value (€99.14)

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 Ratio27.5x
EarningsUS$983.00m
Market CapUS$26.87b

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 Average19.7x
VER VERBUND
15.7x-11.6%€26.3b
EVN EVN
7.6x-7.7%€4.5b
WTRG Essential Utilities
19.8x7.0%US$10.7b
SVT Severn Trent
35.7x23.1%UK£8.2b
AWK American Water Works Company
27.5x7.9%€26.9b

Price-To-Earnings vs Peers: AWK is expensive based on its Price-To-Earnings Ratio (27.5x) compared to the peer average (19.7x).

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 27.5xIndustry Avg. 18.8xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AWK is expensive based on its Price-To-Earnings Ratio (27.5x) compared to the Global Water Utilities industry average (18.8x).

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 Ratio27.5x
Fair PE Ratio13.2x

Price-To-Earnings vs Fair Ratio: AWK is expensive based on its Price-To-Earnings Ratio (27.5x) 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€132.10
€135.64
+2.7%
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€115.52n/a13
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
Nov ’23€144.32
€159.45
+10.5%
11.1%€188.31€133.64€112.2013

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

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