American Water Works Company, Inc.

LSE:0HEW Stock Report

Market Cap: US$24.3b

American Water Works Company Valuation

Is 0HEW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 ($124.63) is trading above our estimate of fair value ($112.88)

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?

Key metric: As 0HEW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HEW. This is calculated by dividing 0HEW's market cap by their current earnings.
What is 0HEW's PE Ratio?
PE Ratio24.6x
EarningsUS$983.00m
Market CapUS$24.26b

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 Average33.2x
SVT Severn Trent
32.8x24.4%UK£7.5b
UU. United Utilities Group
63.5x26.5%UK£7.2b
SSE SSE
9.4x5.2%UK£17.9b
NG. National Grid
27.2x16.1%UK£46.9b
0HEW American Water Works Company
24.6x7.9%US$24.3b

Price-To-Earnings vs Peers: 0HEW is good value based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (33.2x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0HEW 24.6xIndustry Avg. 17.6xNo. of Companies11PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HEW is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the Global Water Utilities industry average (16.8x).

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 Ratio24.6x
Fair PE Ratio15x

Price-To-Earnings vs Fair Ratio: 0HEW is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the estimated Fair Price-To-Earnings Ratio (15x).

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$124.63
US$140.69
+12.9%
8.6%US$164.00US$124.00n/a12
Dec ’25US$136.94
US$142.18
+3.8%
8.6%US$164.00US$124.00n/a12
Nov ’25US$137.26
US$143.34
+4.4%
7.9%US$164.00US$124.00n/a12
Oct ’25US$146.42
US$144.58
-1.3%
7.0%US$164.00US$131.00n/a12
Sep ’25US$141.14
US$144.90
+2.7%
7.2%US$164.00US$131.00n/a11
Aug ’25US$144.27
US$140.08
-2.9%
6.2%US$159.00US$126.00n/a11
Jul ’25US$128.83
US$137.18
+6.5%
7.4%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$126.00US$123.9713
Dec ’24US$133.03
US$148.31
+11.5%
10.1%US$169.00US$126.00US$136.9413
Nov ’24US$119.18
US$146.62
+23.0%
11.1%US$169.00US$126.00US$137.2613
Oct ’24US$122.83
US$154.82
+26.0%
7.0%US$169.00US$137.00US$146.4211
Sep ’24US$136.58
US$155.73
+14.0%
8.0%US$180.00US$137.00US$141.1411
Aug ’24US$146.20
US$157.09
+7.4%
9.5%US$185.00US$136.00US$144.2711
Jul ’24US$141.52
US$158.27
+11.8%
9.0%US$185.00US$136.00US$128.8311
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

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 Analysis2025/01/02 04:55
End of Day Share Price 2025/01/02 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