Essential Utilities Valuation

WTRG Stock  USD 36.87  0.55  1.47%   
At this time, the firm appears to be undervalued. Essential Utilities shows a prevailing Real Value of $39.15 per share. The current price of the firm is $36.87. Our model computes the value of Essential Utilities from reviewing the firm fundamentals such as Shares Outstanding of 283.08 M, current valuation of 18.53 B, and Profit Margin of 0.28 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Essential Utilities' valuation include:
Price Book
1.5541
Enterprise Value
18.5 B
Enterprise Value Ebitda
13.6505
Price Sales
4.451
Forward PE
16.8067
Undervalued
Today
36.87
Please note that Essential Utilities' price fluctuation is very steady at this time. Calculation of the real value of Essential Utilities is based on 3 months time horizon. Increasing Essential Utilities' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Essential stock is determined by what a typical buyer is willing to pay for full or partial control of Essential Utilities. Since Essential Utilities is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Essential Stock. However, Essential Utilities' intrinsic value may or may not be the same as its current market price, 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  36.87 Real  39.15 Target  42.17 Hype  37.44
The real value of Essential Stock, also known as its intrinsic value, is the underlying worth of Essential Utilities Company, which is reflected in its stock price. It is based on Essential Utilities' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Essential Utilities' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
39.15
Real Value
40.42
Upside
Estimating the potential upside or downside of Essential Utilities helps investors to forecast how Essential 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 Essential Utilities more accurately as focusing exclusively on Essential Utilities' fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.910.971.04
Details
Hype
Prediction
LowEstimatedHigh
36.1737.4438.71
Details
11 Analysts
Consensus
LowTarget PriceHigh
38.3742.1746.81
Details
When choosing an evaluation method for Essential Utilities, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.

Essential Utilities Cash

10 Million

Essential Revenue by Product

Essential Utilities Total Value Analysis

Essential Utilities is at this time projected to have valuation of 18.53 B with market capitalization of 10.59 B, debt of 7.73 B, and cash on hands of 12.98 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Essential Utilities fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
18.53 B
10.59 B
7.73 B
12.98 M

Essential Utilities Investor Information

About 85.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.55. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Essential Utilities last dividend was issued on the 9th of February 2026. The entity had 5:4 split on the 3rd of September 2013. Based on the key indicators related to Essential Utilities' liquidity, profitability, solvency, and operating efficiency, Essential Utilities is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in March.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.440.42
Sufficiently Up
Pretty Stable
Total Cash From Operating Activities930.2 M885.9 M
Sufficiently Up
Slightly volatile
Operating Income914.9 M871.3 M
Sufficiently Up
Slightly volatile

Essential Utilities Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Essential Utilities has an asset utilization ratio of 11.57 percent. This implies that the Company is making $0.12 for each dollar of assets. An increasing asset utilization means that Essential Utilities is more efficient with each dollar of assets it utilizes for everyday operations.
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

Essential Utilities Profitability Analysis

Based on Essential Utilities' profitability indicators, Essential Utilities' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Essential Utilities' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-09-30
Previous Quarter
107.8 M
Current Value
92.1 M
Quarterly Volatility
47 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, Essential Utilities' Gross Profit Margin is most likely to slightly decrease in the upcoming years.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.790.67
Fairly Up
Slightly volatile
Net Profit Margin0.140.26
Way Down
Very volatile
Operating Profit Margin0.440.42
Sufficiently Up
Pretty Stable
Pretax Profit Margin0.310.32
Sufficiently Down
Slightly volatile
Return On Assets0.03710.038
Fairly Down
Slightly volatile
Return On Equity0.120.11
Significantly Up
Slightly volatile
For Essential Utilities profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Essential Utilities to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Essential Utilities utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Essential Utilities's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Essential Utilities over time as well as its relative position and ranking within its peers.

Essential Utilities Earnings per Share Projection vs Actual

The next projected EPS of Essential Utilities is estimated to be 0.9735 with future projections ranging from a low of 0.91 to a high of 1.037. Essential Utilities' most recent 12-month trailing earnings per share (EPS TTM) is at 2.4. Please be aware that the consensus of earnings estimates for Essential Utilities is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Essential Utilities is projected to generate 0.9735 in earnings per share on the 31st of March 2026. Essential Utilities earnings estimates show analyst consensus about projected Essential Utilities EPS (Earning Per Share). It derives the highest and the lowest estimates based on Essential Utilities' historical volatility. Many public companies, such as Essential Utilities, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Essential Utilities Earnings Estimation Breakdown

The calculation of Essential Utilities' 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 Essential Utilities is estimated to be 0.9735 with the future projection ranging from a low of 0.91 to a high of 1.037. Please be aware that this consensus of annual earnings estimates for Essential Utilities is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.91
Lowest
Expected EPS
0.9735
1.04
Highest

Essential Utilities Earnings Projection Consensus

Suppose the current estimates of Essential Utilities' value are higher than the current market price of the Essential Utilities stock. In this case, investors may conclude that Essential Utilities 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 Essential Utilities' stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2026Current EPS (TTM)
872.92%
0.0
0.9735
2.4

Essential Utilities Ownership Allocation

Essential Utilities holds a total of 283.08 Million outstanding shares. The majority of Essential Utilities outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Essential Utilities to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Essential Utilities. Please pay attention to any change in the institutional holdings of Essential Utilities as this could imply that something significant has changed or is about to change at the company. On October 22, 2025, Representative Lisa McClain of US Congress acquired under $15k worth of Essential Utilities's common stock.

Essential Utilities Profitability Analysis

The company reported the previous year's revenue of 2.09 B. Net Income was 595.31 M with profit before overhead, payroll, taxes, and interest of 1.41 B.

Essential Utilities Past Distributions to stockholders

Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Essential Utilities' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Essential Utilities and how it compares across the competition.

About Essential Utilities Valuation

The stock valuation mechanism determines Essential Utilities' current worth on a weekly basis. Our valuation model uses a comparative analysis of Essential Utilities. We calculate exposure to Essential Utilities's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Essential Utilities's related companies.
Last ReportedProjected for Next Year
Gross Profit1.4 B1.5 B
Pretax Profit Margin 0.32  0.31 
Operating Profit Margin 0.42  0.44 
Net Profit Margin 0.26  0.14 
Gross Profit Margin 0.67  0.79 

Essential Utilities Quarterly Retained Earnings

2.24 Billion

Essential Utilities' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Essential Utilities' value is low or high relative to the company's performance and growth projections. Determining the market value of Essential Utilities can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Essential Utilities represents a small ownership stake in the entity. As a stockholder of Essential, 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.

Essential Utilities Dividends Analysis For Valuation

The Essential Utilities' current Dividends Paid is estimated to increase to about 418.3 M. The Essential Utilities' current Dividend Yield is estimated to increase to 0.06. At this time, Essential Utilities' Price Earnings To Growth Ratio is most likely to slightly decrease in the upcoming years.
Last ReportedProjected for Next Year
Dividends Paid398.4 M418.3 M
Dividend Yield 0.04  0.06 
Dividend Payout Ratio 0.67  1.06 
Dividend Paid And Capex Coverage Ratio 0.53  0.73 
There are various types of dividends Essential Utilities 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 Essential 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 Essential Utilities directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Essential pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Essential Utilities by the value of the dividends paid out.

Essential Utilities Growth Indicators

Investing in growth stocks can be very risky. If the company such as Essential Utilities 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 Outstanding274.4 M
Quarterly Earnings Growth Y O Y0.307
Forward Price Earnings16.8067

Essential Utilities Current Valuation Indicators

Valuation refers to the process of determining the present value of Essential Utilities and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Essential we look at many different elements of the entity such as Essential's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Essential Utilities, 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 Essential Utilities' 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 Essential Utilities' worth.

Complementary Tools for Essential Stock analysis

When running Essential Utilities' price analysis, check to measure Essential Utilities' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Essential Utilities is operating at the current time. Most of Essential Utilities' value examination focuses on studying past and present price action to predict the probability of Essential Utilities' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Essential Utilities' price. Additionally, you may evaluate how the addition of Essential Utilities to your portfolios can decrease your overall portfolio volatility.
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