WTRG PE Ratio & Valuation,Is WTRG Overvalued

WTRG Relative Valuation

WTRG'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, WTRG is overvalued; if below, it's undervalued.

Historical Valuation

Essential Utilities Inc (WTRG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.22 is considered Undervalued compared with the five-year average of 22.41. The fair price of Essential Utilities Inc (WTRG) is between 39.71 to 54.11 according to relative valuation methord. Compared to the current price of 38.02 USD , Essential Utilities Inc is Undervalued By 4.26%.

Relative Value

Fair Zone

39.71-54.11

Current Price：38.02

4.26%

Undervalued

18.22

13.91

EV/EBITDA

Essential Utilities Inc. (WTRG) has a current EV/EBITDA of 13.91. The 5-year average EV/EBITDA is 15.89. The thresholds are as follows: Strongly Undervalued below 11.72, Undervalued between 11.72 and 13.81, Fairly Valued between 17.98 and 13.81, Overvalued between 17.98 and 20.07, and Strongly Overvalued above 20.07. The current Forward EV/EBITDA of 13.91 falls within the Historic Trend Line -Fairly Valued range.

19.37

EV/EBIT

Essential Utilities Inc. (WTRG) has a current EV/EBIT of 19.37. The 5-year average EV/EBIT is 22.92. The thresholds are as follows: Strongly Undervalued below 16.34, Undervalued between 16.34 and 19.63, Fairly Valued between 26.21 and 19.63, Overvalued between 26.21 and 29.50, and Strongly Overvalued above 29.50. The current Forward EV/EBIT of 19.37 falls within the Undervalued range.

4.61

Essential Utilities Inc. (WTRG) has a current PS of 4.61. The 5-year average PS is 5.14. The thresholds are as follows: Strongly Undervalued below 3.64, Undervalued between 3.64 and 4.39, Fairly Valued between 5.89 and 4.39, Overvalued between 5.89 and 6.64, and Strongly Overvalued above 6.64. The current Forward PS of 4.61 falls within the Historic Trend Line -Fairly Valued range.

10.16

P/OCF

Essential Utilities Inc. (WTRG) has a current P/OCF of 10.16. The 5-year average P/OCF is 13.06. The thresholds are as follows: Strongly Undervalued below 8.16, Undervalued between 8.16 and 10.61, Fairly Valued between 15.51 and 10.61, Overvalued between 15.51 and 17.96, and Strongly Overvalued above 17.96. The current Forward P/OCF of 10.16 falls within the Undervalued range.

-38.98

P/FCF

Essential Utilities Inc. (WTRG) has a current P/FCF of -38.98. The 5-year average P/FCF is -45.51. The thresholds are as follows: Strongly Undervalued below -135.76, Undervalued between -135.76 and -90.64, Fairly Valued between -0.39 and -90.64, Overvalued between -0.39 and 44.74, and Strongly Overvalued above 44.74. The current Forward P/FCF of -38.98 falls within the Historic Trend Line -Fairly Valued range.

Essential Utilities Inc (WTRG) has a current Price-to-Book (P/B) ratio of 1.61. Compared to its 3-year average P/B ratio of 1.75 , the current P/B ratio is approximately -8.19% higher. Relative to its 5-year average P/B ratio of 1.99, the current P/B ratio is about -19.39% higher. Essential Utilities Inc (WTRG) has a Forward Free Cash Flow (FCF) yield of approximately -3.91%. Compared to its 3-year average FCF yield of -4.09%, the current FCF yield is approximately -4.26% lower. Relative to its 5-year average FCF yield of -3.58% , the current FCF yield is about 9.25% lower.

1.61

P/B

Median3y

1.75

Median5y

1.99

-3.91

FCF Yield

Median3y

-4.09

Median5y

-3.58

Competitors Valuation Multiple

The average P/S ratio for WTRG's competitors is 3.70, providing a benchmark for relative valuation. Essential Utilities Inc Corp (WTRG) exhibits a P/S ratio of 4.61, which is 24.55% above the industry average. Given its robust revenue growth of 9.58%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of WTRG increased by 8.16% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 15.95 to 19.30.

The secondary factor is the Revenue Growth, contributed 9.58%to the performance.

Overall, the performance of WTRG in the past 1 year is driven by Margin Expansion. Which is more sustainable.

9.58%

435.26M → 476.97M

Revenue Growth

21.00%

15.95 → 19.30

Margin Expansion

-22.42%

20.78 → 16.12

P/E Change

8.16%

35.15 → 38.02

Mkt Cap Growth

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Frequently Asked Questions

Is Essential Utilities Inc (WTRG) currently overvalued or undervalued?

What is Essential Utilities Inc (WTRG) fair value?

WTRG'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 Essential Utilities Inc (WTRG) is between 39.71 to 54.11 according to relative valuation methord.

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

What is the current P/B ratio for Essential Utilities Inc (WTRG) as of Jan 08 2026?

As of Jan 08 2026, Essential Utilities Inc (WTRG) has a P/B ratio of 1.61. This indicates that the market values WTRG at 1.61 times its book value.

What is the current FCF Yield for Essential Utilities Inc (WTRG) as of Jan 08 2026?

As of Jan 08 2026, Essential Utilities Inc (WTRG) has a FCF Yield of -3.91%. This means that for every dollar of Essential Utilities Inc’s market capitalization, the company generates -3.91 cents in free cash flow.

What is the current Forward P/E ratio for Essential Utilities Inc (WTRG) as of Jan 08 2026?

As of Jan 08 2026, Essential Utilities Inc (WTRG) has a Forward P/E ratio of 18.22. This means the market is willing to pay $18.22 for every dollar of Essential Utilities Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Essential Utilities Inc (WTRG) as of Jan 08 2026?

As of Jan 08 2026, Essential Utilities Inc (WTRG) has a Forward P/S ratio of 4.61. This means the market is valuing WTRG at $4.61 for every dollar of expected revenue over the next 12 months.

WTRG Valuation