American Water Valuation
| AWK Stock | USD 128.37 4.68 3.78% |
At this time, the firm appears to be fairly valued. American Water Works shows a prevailing Real Value of $124.39 per share. The current price of the firm is $128.37. Our model approximates the value of American Water Works from analyzing the firm fundamentals such as profit margin of 0.22 %, and Return On Equity of 0.1 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting American Water's valuation include:
Price Book 2.2374 | Enterprise Value | Enterprise Value Ebitda 13.6485 | Price Sales 4.7616 | Forward PE 20.4918 |
Fairly Valued
Today
Please note that American Water's price fluctuation is very steady at this time. Calculation of the real value of American Water Works is based on 3 months time horizon. Increasing American Water's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
American Water's intrinsic value may or may not be the same as its current market price of 128.37, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 128.37 | Real 124.39 | Target 138.7 | Hype 128.3 |
The intrinsic value of American Water's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence American Water's stock price.
Estimating the potential upside or downside of American Water Works helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Water more accurately as focusing exclusively on American Water's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use American Water's intrinsic value based on its ongoing forecasts of American Water's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American Water's closest peers.
American Water Cash |
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American Water Total Value Analysis
American Water Works is presently anticipated to have company total value of 39.61 B with market capitalization of 24.14 B, debt of 14.11 B, and cash on hands of 96 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the American Water fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
39.61 B | 24.14 B | 14.11 B | 96 M |
American Water Investor Information
About 99.0% of the company shares are held by institutions such as insurance companies. The book value of American Water was presently reported as 55.9. The company has Price/Earnings To Growth (PEG) ratio of 2.44. American Water Works recorded earning per share (EPS) of 5.63. The entity last dividend was issued on the 10th of February 2026. The firm had 2:1 split on the 26th of July 1996. Based on the analysis of American Water's profitability, liquidity, and operating efficiency, American Water Works may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.35 | 0.33 |
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| Total Cash From Operating Activities | 2.5 B | 2.4 B |
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| Operating Income | 2.1 B | 2 B |
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American Water Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Water has an asset utilization ratio of 14.27 percent. This suggests that the Company is making $0.14 for each dollar of assets. An increasing asset utilization means that American Water Works is more efficient with each dollar of assets it utilizes for everyday operations.American Water Profitability Analysis
Considering American Water's profitability and operating efficiency indicators, American Water's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess American Water's ability to earn profits and add value for shareholders.Net Income | First Reported 1985-09-30 | Previous Quarter 289 M | Current Value 379 M | Quarterly Volatility 125.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.42 | 0.54 |
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| Net Profit Margin | 0.21 | 0.2 |
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| Operating Profit Margin | 0.35 | 0.33 |
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| Pretax Profit Margin | 0.14 | 0.26 |
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| Return On Assets | 0.0244 | 0.0368 |
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| Return On Equity | 0.0886 | 0.12 |
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For American Water profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Water Works to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Water utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Water's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Water over time as well as its relative position and ranking within its peers.
American Water Earnings per Share Projection vs Actual
The next projected EPS of American Water is estimated to be 1.52615 with future projections ranging from a low of 1.51 to a high of 1.5475. American Water's most recent 12-month trailing earnings per share (EPS TTM) is at 5.63. Please be aware that the consensus of earnings estimates for American Water Works is based on EPS before non-recurring items and includes expenses related to employee stock options.American Water Earnings Estimation Breakdown
The calculation of American Water's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of American Water is estimated to be 1.52615 with the future projection ranging from a low of 1.51 to a high of 1.5475. Please be aware that this consensus of annual earnings estimates for American Water Works is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
1.51 Lowest | Expected EPS | 1.55 Highest |
American Water Earnings Projection Consensus
Suppose the current estimates of American Water's value are higher than the current market price of the American Water stock. In this case, investors may conclude that American Water is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and American Water's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2026 | Current EPS (TTM) | |
| 12 | 89.01% | 0.0 | 1.52615 | 5.63 |
American Water Ownership Allocation
American Water holds a total of 195.18 Million outstanding shares. The majority of American Water Works outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in American Water Works to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in American Water. Please pay attention to any change in the institutional holdings of American Water Works as this could imply that something significant has changed or is about to change at the company. Please note that on December 22, 2025, Representative Dwight Evans of US Congress acquired under $15k worth of American Water Works's common stock.American Water Profitability Analysis
The company reported the last year's revenue of 4.68 B. Total Income to common stockholders was 1.05 B with profit before taxes, overhead, and interest of 3.08 B.American Water Past Distributions to stockholders
About American Water Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of American Water Works. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Water Works based exclusively on its fundamental and basic technical indicators. By analyzing American Water's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of American Water's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Water. We calculate exposure to American Water's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of American Water's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.2 B | 3.4 B | |
| Pretax Profit Margin | 0.26 | 0.14 | |
| Operating Profit Margin | 0.33 | 0.35 | |
| Net Profit Margin | 0.20 | 0.21 | |
| Gross Profit Margin | 0.54 | 0.42 |
A single share of American Water represents a small ownership stake in the entity. As a stockholder of American, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
American Water Dividends Analysis For Valuation
At this time, American Water's Dividends Paid is quite stable compared to the past year. Dividend Yield is expected to rise to 0.03 this year, although the value of Dividend Payout Ratio will most likely fall to 0.37. . At this time, American Water's Retained Earnings are quite stable compared to the past year. Retained Earnings Total Equity is expected to rise to about 1.5 B this year, although the value of Earnings Yield will most likely fall to 0.03.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 672.8 M | 706.4 M | |
| Dividend Yield | 0.03 | 0.03 | |
| Dividend Payout Ratio | 0.50 | 0.37 | |
| Dividend Paid And Capex Coverage Ratio | 0.53 | 0.50 |
There are various types of dividends American Water can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of American shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from American Water Works directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When American pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of American Water by the value of the dividends paid out.
American Water Growth Indicators
Investing in growth stocks can be very risky. If the company such as American Water does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 195 M | |
| Quarterly Earnings Growth Y O Y | 0.081 | |
| Forward Price Earnings | 20.4918 |
American Water Current Valuation Indicators
American Water's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final American Water's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as American Water, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use American Water's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes American Water's worth.When determining whether American Water Works is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Water Works Stock. Highlighted below are key reports to facilitate an investment decision about American Water Works Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Water Works. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in manufacturing. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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. Comprehensive American Water assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 0.081 | Dividend Share 3.185 | Earnings Share 5.63 | Revenue Per Share | Quarterly Revenue Growth 0.097 |
Investors evaluate American Water Works using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating American Water's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. External factors like market trends, sector rotation, and investor psychology can cause American Water's market price to deviate significantly from intrinsic value.
Understanding that American Water's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether American Water represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, American Water's market price signifies the transaction level at which participants voluntarily complete trades.