AWK Relative Valuation
AWK's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AWK is overvalued; if below, it's undervalued.
Historical Valuation
American Water Works Co Inc (AWK) is now in the Undervalued zone, suggesting that its current forward PE ratio of 21.80 is considered Undervalued compared with the five-year average of 30.36. The fair price of American Water Works Co Inc (AWK) is between 165.03 to 221.61 according to relative valuation methord. Compared to the current price of 128.93 USD , American Water Works Co Inc is Undervalued By 21.87%.
Relative Value
Fair Zone
165.03-221.61
Current Price：128.93
21.87%
Undervalued
21.46
PE
1Y
3Y
5Y
Trailing
Forward
13.46
EV/EBITDA
American Water Works Co Inc. (AWK) has a current EV/EBITDA of 13.46. The 5-year average EV/EBITDA is 16.46. The thresholds are as follows: Strongly Undervalued below 12.32, Undervalued between 12.32 and 14.39, Fairly Valued between 18.52 and 14.39, Overvalued between 18.52 and 20.59, and Strongly Overvalued above 20.59. The current Forward EV/EBITDA of 13.46 falls within the Undervalued range.
19.43
EV/EBIT
American Water Works Co Inc. (AWK) has a current EV/EBIT of 19.43. The 5-year average EV/EBIT is 24.32. The thresholds are as follows: Strongly Undervalued below 17.76, Undervalued between 17.76 and 21.04, Fairly Valued between 27.60 and 21.04, Overvalued between 27.60 and 30.88, and Strongly Overvalued above 30.88. The current Forward EV/EBIT of 19.43 falls within the Undervalued range.
4.93
PS
American Water Works Co Inc. (AWK) has a current PS of 4.93. The 5-year average PS is 6.37. The thresholds are as follows: Strongly Undervalued below 4.58, Undervalued between 4.58 and 5.47, Fairly Valued between 7.27 and 5.47, Overvalued between 7.27 and 8.17, and Strongly Overvalued above 8.17. The current Forward PS of 4.93 falls within the Undervalued range.
11.53
P/OCF
American Water Works Co Inc. (AWK) has a current P/OCF of 11.53. The 5-year average P/OCF is 15.95. The thresholds are as follows: Strongly Undervalued below 10.24, Undervalued between 10.24 and 13.10, Fairly Valued between 18.81 and 13.10, Overvalued between 18.81 and 21.67, and Strongly Overvalued above 21.67. The current Forward P/OCF of 11.53 falls within the Undervalued range.
0.00
P/FCF
American Water Works Co Inc. (AWK) has a current P/FCF of 0.00. The 5-year average P/FCF is 35.42. The thresholds are as follows: Strongly Undervalued below -937.08, Undervalued between -937.08 and -450.83, Fairly Valued between 521.67 and -450.83, Overvalued between 521.67 and 1007.92, and Strongly Overvalued above 1007.92. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.
American Water Works Co Inc (AWK) has a current Price-to-Book (P/B) ratio of 2.34. Compared to its 3-year average P/B ratio of 2.71 , the current P/B ratio is approximately -13.40% higher. Relative to its 5-year average P/B ratio of 3.26, the current P/B ratio is about -28.21% higher. American Water Works Co Inc (AWK) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -3.27%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -2.63% , the current FCF yield is about -100.00% lower.
2.31
P/B
Median3y
2.71
Median5y
3.26
-3.67
FCF Yield
Median3y
-3.27
Median5y
-2.63
Competitors Valuation Multiple
The average P/S ratio for AWK's competitors is , providing a benchmark for relative valuation. American Water Works Co Inc Corp (AWK) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 9.67%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AWK increased by 4.21% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.32B to 1.45B.
The secondary factor is the Margin Expansion, contributed -1.28%to the performance.
Overall, the performance of AWK in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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