SJW Group

NasdaqGS:SJW Stock Report

Market Cap: US$1.8b

SJW Group Valuation

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

Below Fair Value: SJW ($54.8) is trading above our estimate of fair value ($52.67)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SJW. This is calculated by dividing SJW's market cap by their current earnings.
What is SJW's PE Ratio?
PE Ratio20.2x
EarningsUS$90.00m
Market CapUS$1.79b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SJW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.4x
MSEX Middlesex Water
29xn/aUS$1.2b
CWT California Water Service Group
15.1x0.3%US$3.0b
AWR American States Water
29x8.5%US$3.2b
YORW York Water
24.3xn/aUS$509.0m
SJW SJW Group
20.2x7.6%US$1.8b

Price-To-Earnings vs Peers: SJW is good value based on its Price-To-Earnings Ratio (20.2x) compared to the peer average (24.4x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SJW 20.2xIndustry Avg. 19.1xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SJW is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the Global Water Utilities industry average (19.1x).

Price to Earnings Ratio vs Fair Ratio

What is SJW'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.

SJW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.2x
Fair PE Ratio19.8x

Price-To-Earnings vs Fair Ratio: SJW is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).

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 SJW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$54.80
US$64.67
+18.0%
7.2%US$73.00US$59.00n/a6
Nov ’25US$54.89
US$65.67
+19.6%
5.9%US$73.00US$61.00n/a6
Oct ’25US$58.50
US$66.00
+12.8%
5.4%US$73.00US$63.00n/a6
Sep ’25US$58.99
US$66.20
+12.2%
5.8%US$73.00US$63.00n/a5
Aug ’25US$60.75
US$65.00
+7.0%
8.6%US$73.00US$56.00n/a5
Jul ’25US$54.80
US$64.75
+18.2%
9.9%US$73.00US$56.00n/a4
Jun ’25US$54.71
US$68.25
+24.7%
12.3%US$82.00US$61.00n/a4
May ’25US$55.02
US$66.33
+20.6%
11.3%US$82.00US$60.00n/a6
Apr ’25US$55.92
US$66.60
+19.1%
12.3%US$82.00US$60.00n/a5
Mar ’25US$56.40
US$68.83
+22.0%
9.8%US$82.00US$62.00n/a6
Feb ’25US$60.35
US$71.60
+18.6%
11.4%US$82.00US$61.00n/a5
Jan ’25US$65.35
US$72.00
+10.2%
10.9%US$82.00US$61.00n/a5
Dec ’24US$66.92
US$72.40
+8.2%
10.9%US$82.00US$61.00n/a5
Nov ’24US$62.70
US$70.60
+12.6%
12.3%US$82.00US$60.00US$54.895
Oct ’24US$60.11
US$75.40
+25.4%
6.6%US$82.00US$67.00US$58.505
Sep ’24US$65.43
US$78.60
+20.1%
5.8%US$85.00US$72.00US$58.995
Aug ’24US$69.43
US$80.80
+16.4%
9.2%US$93.00US$72.00US$60.755
Jul ’24US$70.11
US$80.80
+15.2%
9.2%US$93.00US$72.00US$54.805
Jun ’24US$74.57
US$83.40
+11.8%
7.2%US$93.00US$76.00US$54.715
May ’24US$75.82
US$83.80
+10.5%
6.6%US$93.00US$78.00US$55.025
Apr ’24US$76.13
US$83.00
+9.0%
7.9%US$93.00US$74.00US$55.925
Mar ’24US$74.34
US$85.00
+14.3%
5.6%US$93.00US$78.00US$56.405
Feb ’24US$79.81
US$85.40
+7.0%
5.6%US$93.00US$78.00US$60.355
Jan ’24US$81.19
US$81.60
+0.5%
8.1%US$93.00US$75.00US$65.355
Dec ’23US$74.32
US$79.67
+7.2%
9.0%US$93.00US$72.00US$66.926
Nov ’23US$69.21
US$78.60
+13.6%
9.4%US$93.00US$72.00US$62.705

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

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