American Water Works Stock Market Value
| AWK Stock | USD 137.31 1.48 1.07% |
| Symbol | American |
American Water Works Price To Book Ratio
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Water. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Water listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.084 | Dividend Share 2.945 | Earnings Share 5.04 | Revenue Per Share 23.124 | Quarterly Revenue Growth 0.134 |
The market value of American Water Works is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Water's value that differs from its market value or its book value, called intrinsic value, which is American Water's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Water's market value can be influenced by many factors that don't directly affect American Water's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Water's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Water is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Water's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
American Water 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to American Water's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of American Water.
| 12/01/2023 |
| 11/25/2024 |
If you would invest 0.00 in American Water on December 1, 2023 and sell it all today you would earn a total of 0.00 from holding American Water Works or generate 0.0% return on investment in American Water over 360 days. American Water is related to or competes with California Water, Middlesex Water, American States, York Water, SJW Group, Essential Utilities, and Artesian Resources. American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United State... More
American Water Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure American Water's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess American Water Works upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.12) | |||
| Maximum Drawdown | 5.42 | |||
| Value At Risk | (1.70) | |||
| Potential Upside | 1.78 |
American Water Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for American Water's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as American Water's standard deviation. In reality, there are many statistical measures that can use American Water historical prices to predict the future American Water's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.21) | |||
| Treynor Ratio | 1.97 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of American Water's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
American Water Works Backtested Returns
American Water Works secures Sharpe Ratio (or Efficiency) of -0.0139, which signifies that the company had a -0.0139% return per unit of standard deviation over the last 3 months. American Water Works exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm American Water's risk adjusted performance of (0.01), and Mean Deviation of 0.9187 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of -0.0123, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning American Water are expected to decrease at a much lower rate. During the bear market, American Water is likely to outperform the market. At this point, American Water Works has a negative expected return of -0.0164%. Please make sure to confirm American Water's skewness, and the relationship between the total risk alpha and day median price , to decide if American Water Works performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.8 |
Almost perfect reverse predictability
American Water Works has almost perfect reverse predictability. Overlapping area represents the amount of predictability between American Water time series from 1st of December 2023 to 29th of May 2024 and 29th of May 2024 to 25th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of American Water Works price movement. The serial correlation of -0.8 indicates that around 80.0% of current American Water price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.8 | |
| Spearman Rank Test | -0.11 | |
| Residual Average | 0.0 | |
| Price Variance | 40.32 |
American Water Works lagged returns against current returns
Autocorrelation, which is American Water stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting American Water's stock expected returns. We can calculate the autocorrelation of American Water returns to help us make a trade decision. For example, suppose you find that American Water has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
American Water regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If American Water stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if American Water stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in American Water stock over time.
Current vs Lagged Prices |
| Timeline |
American Water Lagged Returns
When evaluating American Water's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of American Water stock have on its future price. American Water autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, American Water autocorrelation shows the relationship between American Water stock current value and its past values and can show if there is a momentum factor associated with investing in American Water Works.
Regressed Prices |
| Timeline |
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American Water technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.