AWK PE Ratio & Valuation,Is AWK Overvalued

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 21.66 is considered Undervalued compared with the five-year average of 30.13. The fair price of American Water Works Co Inc (AWK) is between 139.55 to 196.28 according to relative valuation methord. Compared to the current price of 127.27 USD , American Water Works Co Inc is Undervalued By 8.8%.

Relative Value

Fair Zone

139.55-196.28

Current Price：127.27

8.8%

Undervalued

21.66

13.42

EV/EBITDA

American Water Works Co Inc. (AWK) has a current EV/EBITDA of 13.42. The 5-year average EV/EBITDA is 16.37. The thresholds are as follows: Strongly Undervalued below 12.20, Undervalued between 12.20 and 14.29, Fairly Valued between 18.46 and 14.29, Overvalued between 18.46 and 20.55, and Strongly Overvalued above 20.55. The current Forward EV/EBITDA of 13.42 falls within the Undervalued range.

19.33

EV/EBIT

American Water Works Co Inc. (AWK) has a current EV/EBIT of 19.33. The 5-year average EV/EBIT is 24.21. The thresholds are as follows: Strongly Undervalued below 17.55, Undervalued between 17.55 and 20.88, Fairly Valued between 27.54 and 20.88, Overvalued between 27.54 and 30.87, and Strongly Overvalued above 30.87. The current Forward EV/EBIT of 19.33 falls within the Undervalued range.

4.90

American Water Works Co Inc. (AWK) has a current PS of 4.90. The 5-year average PS is 6.34. The thresholds are as follows: Strongly Undervalued below 4.51, Undervalued between 4.51 and 5.43, Fairly Valued between 7.25 and 5.43, Overvalued between 7.25 and 8.17, and Strongly Overvalued above 8.17. The current Forward PS of 4.90 falls within the Undervalued range.

11.47

P/OCF

American Water Works Co Inc. (AWK) has a current P/OCF of 11.47. The 5-year average P/OCF is 15.85. The thresholds are as follows: Strongly Undervalued below 10.05, Undervalued between 10.05 and 12.95, Fairly Valued between 18.75 and 12.95, Overvalued between 18.75 and 21.65, and Strongly Overvalued above 21.65. The current Forward P/OCF of 11.47 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 43.53. The thresholds are as follows: Strongly Undervalued below -912.70, Undervalued between -912.70 and -434.58, Fairly Valued between 521.65 and -434.58, Overvalued between 521.65 and 999.76, and Strongly Overvalued above 999.76. 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 2.33. Compared to its 3-year average P/B ratio of 2.67 , the current P/B ratio is approximately -12.59% higher. Relative to its 5-year average P/B ratio of 3.23, the current P/B ratio is about -27.87% higher. American Water Works Co Inc (AWK) has a Forward Free Cash Flow (FCF) yield of approximately -3.68%. Compared to its 3-year average FCF yield of -3.27%, the current FCF yield is approximately 12.60% lower. Relative to its 5-year average FCF yield of -2.67% , the current FCF yield is about 38.04% lower.

2.33

P/B

Median3y

2.67

Median5y

3.23

-3.68

FCF Yield

Median3y

-3.27

Median5y

-2.67

Competitors Valuation Multiple

The average P/S ratio for AWK's competitors is 4.14, providing a benchmark for relative valuation. American Water Works Co Inc Corp (AWK) exhibits a P/S ratio of 4.90, which is 18.54% above the industry average. Given its robust revenue growth of 9.67%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of AWK increased by 2.74% 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.

9.67%

1.32B → 1.45B

Revenue Growth

-1.28%

26.46 → 26.12

Margin Expansion

-5.65%

24.27 → 22.90

P/E Change

2.74%

123.87 → 127.27

Mkt Cap Growth

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Frequently Asked Questions

Is American Water Works Co Inc (AWK) currently overvalued or undervalued?

What is American Water Works Co Inc (AWK) fair value?

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. The fair price of American Water Works Co Inc (AWK) is between 139.55 to 196.28 according to relative valuation methord.

How does AWK's valuation metrics compare to the industry average?

What is the current P/B ratio for American Water Works Co Inc (AWK) as of Jan 08 2026?

As of Jan 08 2026, American Water Works Co Inc (AWK) has a P/B ratio of 2.33. This indicates that the market values AWK at 2.33 times its book value.

What is the current FCF Yield for American Water Works Co Inc (AWK) as of Jan 08 2026?

As of Jan 08 2026, American Water Works Co Inc (AWK) has a FCF Yield of -3.68%. This means that for every dollar of American Water Works Co Inc’s market capitalization, the company generates -3.68 cents in free cash flow.

What is the current Forward P/E ratio for American Water Works Co Inc (AWK) as of Jan 08 2026?

As of Jan 08 2026, American Water Works Co Inc (AWK) has a Forward P/E ratio of 21.66. This means the market is willing to pay $21.66 for every dollar of American Water Works Co Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for American Water Works Co Inc (AWK) as of Jan 08 2026?

As of Jan 08 2026, American Water Works Co Inc (AWK) has a Forward P/S ratio of 4.90. This means the market is valuing AWK at $4.90 for every dollar of expected revenue over the next 12 months.

AWK Valuation