American Water Works Company, Inc.

LSE:0HEW Stock Report

Market Cap: US$25.0b

American Water Works Company Valuation

Is 0HEW 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 0HEW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0HEW ($127.43) is trading above our estimate of fair value ($92.03)

Significantly Below Fair Value: 0HEW is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HEW?

Other financial metrics that can be useful for relative valuation.

0HEW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.7x
Enterprise Value/EBITDA16.4x
PEG Ratio3.5x

Price to Earnings Ratio vs Peers

How does 0HEW's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HEW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.5x
SVT Severn Trent
53.9x24.4%UK£7.3b
SSE SSE
11.2x3.4%UK£19.2b
NG. National Grid
19x11.8%UK£42.2b
CNA Centrica
1.8x-41.4%UK£6.9b
0HEW American Water Works Company
26.3x7.4%US$25.0b

Price-To-Earnings vs Peers: 0HEW is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the peer average (21.5x).


Price to Earnings Ratio vs Industry

How does 0HEW's PE Ratio compare vs other companies in the Global Water Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 0HEW is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the Global Water Utilities industry average (17.1x).


Price to Earnings Ratio vs Fair Ratio

What is 0HEW'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.

0HEW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26x
Fair PE Ratio12.3x

Price-To-Earnings vs Fair Ratio: 0HEW is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).


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 0HEW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$128.96
US$138.60
+7.5%
8.0%US$159.00US$125.00n/a11
Jun ’25US$129.85
US$138.42
+6.6%
8.1%US$159.00US$123.00n/a11
May ’25US$124.88
US$137.06
+9.8%
8.8%US$159.00US$123.00n/a11
Apr ’25US$121.43
US$137.55
+13.3%
8.2%US$159.00US$123.00n/a12
Mar ’25US$119.02
US$139.05
+16.8%
7.4%US$159.00US$127.00n/a12
Feb ’25US$124.97
US$146.51
+17.2%
9.8%US$169.00US$128.00n/a13
Jan ’25US$131.57
US$148.90
+13.2%
10.1%US$169.00US$126.00n/a13
Dec ’24US$133.03
US$148.31
+11.5%
10.1%US$169.00US$126.00n/a13
Nov ’24US$119.18
US$146.62
+23.0%
11.1%US$169.00US$126.00n/a13
Oct ’24US$122.83
US$154.82
+26.0%
7.0%US$169.00US$137.00n/a11
Sep ’24US$136.58
US$155.73
+14.0%
8.0%US$180.00US$137.00n/a11
Aug ’24US$146.20
US$157.09
+7.4%
9.5%US$185.00US$136.00n/a11
Jul ’24US$141.52
US$158.27
+11.8%
9.0%US$185.00US$136.00n/a11
Jun ’24US$143.16
US$158.64
+10.8%
9.1%US$185.00US$134.00US$129.8511
May ’24US$148.46
US$158.45
+6.7%
9.1%US$185.00US$134.00US$124.8811
Apr ’24US$144.94
US$155.73
+7.4%
10.1%US$185.00US$134.00US$121.4311
Mar ’24US$137.62
US$157.91
+14.7%
10.1%US$185.00US$134.00US$119.0211
Feb ’24US$156.25
US$159.18
+1.9%
10.3%US$185.00US$132.00US$124.9711
Jan ’24US$154.42
US$156.50
+1.3%
11.6%US$186.00US$132.00US$131.5711
Dec ’23US$154.08
US$155.71
+1.1%
11.2%US$186.00US$132.00US$133.0312
Nov ’23US$142.91
US$157.50
+10.2%
11.1%US$186.00US$132.00US$119.1813
Oct ’23US$131.68
US$163.50
+24.2%
8.1%US$186.00US$132.00US$122.8314
Sep ’23US$149.92
US$163.29
+8.9%
8.1%US$186.00US$132.00US$136.5814
Aug ’23US$155.87
US$161.29
+3.5%
9.7%US$186.00US$132.00US$146.2014
Jul ’23US$152.40
US$161.00
+5.6%
10.6%US$186.00US$131.00US$141.5214
Jun ’23US$151.68
US$161.86
+6.7%
10.0%US$186.00US$131.00US$143.1614

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


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