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 22.58. The fair price of Essential Utilities Inc (WTRG) is between 48.81 to 63.65 according to relative valuation methord. Compared to the current price of 38.86 USD , Essential Utilities Inc is Undervalued By 20.38%.
Relative Value
Fair Zone
48.81-63.65
Current Price：38.86
20.38%
Undervalued
17.77
PE
1Y
3Y
5Y
Trailing
Forward
13.86
EV/EBITDA
Essential Utilities Inc. (WTRG) has a current EV/EBITDA of 13.86. The 5-year average EV/EBITDA is 15.96. The thresholds are as follows: Strongly Undervalued below 11.79, Undervalued between 11.79 and 13.87, Fairly Valued between 18.05 and 13.87, Overvalued between 18.05 and 20.13, and Strongly Overvalued above 20.13. The current Forward EV/EBITDA of 13.86 falls within the Undervalued range.
19.13
EV/EBIT
Essential Utilities Inc. (WTRG) has a current EV/EBIT of 19.13. The 5-year average EV/EBIT is 23.03. The thresholds are as follows: Strongly Undervalued below 16.46, Undervalued between 16.46 and 19.74, Fairly Valued between 26.31 and 19.74, Overvalued between 26.31 and 29.60, and Strongly Overvalued above 29.60. The current Forward EV/EBIT of 19.13 falls within the Undervalued range.
4.63
PS
Essential Utilities Inc. (WTRG) has a current PS of 4.63. The 5-year average PS is 5.17. The thresholds are as follows: Strongly Undervalued below 3.66, Undervalued between 3.66 and 4.41, Fairly Valued between 5.92 and 4.41, Overvalued between 5.92 and 6.67, and Strongly Overvalued above 6.67. The current Forward PS of 4.63 falls within the Historic Trend Line -Fairly Valued range.
10.21
P/OCF
Essential Utilities Inc. (WTRG) has a current P/OCF of 10.21. The 5-year average P/OCF is 13.17. The thresholds are as follows: Strongly Undervalued below 8.24, Undervalued between 8.24 and 10.71, Fairly Valued between 15.64 and 10.71, Overvalued between 15.64 and 18.11, and Strongly Overvalued above 18.11. The current Forward P/OCF of 10.21 falls within the Undervalued range.
-39.17
P/FCF
Essential Utilities Inc. (WTRG) has a current P/FCF of -39.17. The 5-year average P/FCF is -45.01. The thresholds are as follows: Strongly Undervalued below -135.65, Undervalued between -135.65 and -90.33, Fairly Valued between 0.31 and -90.33, Overvalued between 0.31 and 45.64, and Strongly Overvalued above 45.64. The current Forward P/FCF of -39.17 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 1.77 , the current P/B ratio is approximately -8.93% higher. Relative to its 5-year average P/B ratio of 2.01, the current P/B ratio is about -19.61% higher. Essential Utilities Inc (WTRG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -4.08%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -3.54% , the current FCF yield is about -100.00% lower.
1.57
P/B
Median3y
1.77
Median5y
2.01
-3.89
FCF Yield
Median3y
-4.08
Median5y
-3.54
Competitors Valuation Multiple
The average P/S ratio for WTRG's competitors is , providing a benchmark for relative valuation. Essential Utilities Inc Corp (WTRG) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 9.58%, 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 WTRG increased by 5.33% 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.
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FAQ
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