California Water Service Group

DB:WT5 Stock Report

Market Cap: €2.9b

California Water Service Group Valuation

Is WT5 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 WT5 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WT5 (€48.8) is trading above our estimate of fair value (€37.7)

Significantly Below Fair Value: WT5 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WT5?

Key metric: As WT5 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WT5. This is calculated by dividing WT5's market cap by their current earnings.
What is WT5's PE Ratio?
PE Ratio15.2x
EarningsUS$201.28m
Market CapUS$3.06b

Price to Earnings Ratio vs Peers

How does WT5's PE Ratio compare to its peers?

The above table shows the PE ratio for WT5 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.3x
FHW Fernheizwerk Neukölln
22.2xn/a€54.3m
ECV Encavis
n/a62.9%€2.8b
LEC Lechwerke
25.9xn/a€2.5b
MNV6 Mainova
33.7xn/a€1.9b
WT5 California Water Service Group
15.2x0.3%€3.1b

Price-To-Earnings vs Peers: WT5 is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (-27.1x).

Price to Earnings Ratio vs Industry

How does WT5's PE Ratio compare vs other companies in the Global Water Utilities Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WT5 15.2xIndustry Avg. 18.0xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WT5 is good value based on its Price-To-Earnings Ratio (15.2x) compared to the Global Water Utilities industry average (18.5x).

Price to Earnings Ratio vs Fair Ratio

What is WT5'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.

WT5 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.2x
Fair PE Ratio17.7x

Price-To-Earnings vs Fair Ratio: WT5 is good value based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).

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 WT5 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€48.80
€53.52
+9.7%
3.7%€56.29€51.68n/a3
Nov ’25€47.58
€53.52
+12.5%
3.7%€56.29€51.68n/a3
Oct ’25€48.42
€53.23
+9.9%
3.2%€55.67€52.02n/a3
Sep ’25€49.52
€53.23
+7.5%
3.2%€55.67€52.02n/a3
Aug ’25€49.88
€52.02
+4.3%
1.7%€52.64€50.79n/a3
Jul ’25€44.92
€50.14
+11.6%
5.5%€52.93€46.43n/a3
Jun ’25€44.66
€50.14
+12.3%
5.5%€52.93€46.43n/a3
May ’25€44.98
€49.31
+9.6%
6.3%€53.28€45.81n/a4
Apr ’25€42.80
€46.73
+9.2%
8.9%€52.75€41.64n/a4
Mar ’25€42.20
€46.14
+9.3%
10.3%€52.60€39.68n/a4
Feb ’25€41.60
€47.04
+13.1%
10.6%€52.32€40.39n/a4
Jan ’25€47.20
€47.84
+1.4%
9.0%€52.95€42.73n/a4
Dec ’24€46.00
€46.99
+2.1%
9.6%€52.26€41.26n/a4
Nov ’24€45.60
€48.98
+7.4%
8.4%€53.94€44.48€47.584
Oct ’24€44.20
€50.24
+13.7%
7.4%€53.28€43.93€48.424
Sep ’24€46.20
€49.97
+8.2%
6.5%€52.74€44.41€49.524
Aug ’24€47.60
€51.25
+7.7%
10.8%€59.87€44.45€49.884
Jul ’24€46.80
€53.60
+14.5%
9.6%€60.47€46.73€44.924
Jun ’24€51.50
€57.42
+11.5%
4.7%€61.62€54.15€44.664
May ’24€50.50
€56.27
+11.4%
4.7%€59.90€52.64€44.984
Apr ’24€52.50
€57.90
+10.3%
4.6%€61.89€54.39€42.804
Mar ’24€52.50
€59.98
+14.2%
4.7%€63.91€56.50€42.204
Feb ’24€55.00
€58.71
+6.8%
3.0%€60.79€56.18€41.604
Jan ’24€57.00
€60.14
+5.5%
3.7%€62.71€57.10€47.204
Dec ’23€61.00
€60.56
-0.7%
4.3%€63.65€57.95€46.004
Nov ’23€61.00
€62.89
+3.1%
3.8%€66.24€61.22€45.603

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

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