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American Water Works Company Inc
NYSE:AWK

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American Water Works Company Inc
NYSE:AWK
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Price: 134.6 USD 2.27%
Market Cap: $26.3B

EV/EBITDA

14.6
Current
10%
Cheaper
vs 3-y average of 16.2

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
14.6
=
Enterprise Value
$40.7B
/
EBITDA
$2.8B

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
14.6
=
Enterprise Value
$40.7B
/
EBITDA
$2.8B

Valuation Scenarios

American Water Works Company Inc is trading below its 3-year average

If EV/EBITDA returns to its 3-Year Average (16.2), the stock would be worth $149.04 (11% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-16%
Maximum Upside
+13%
Average Upside
1%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 14.6 $134.6
0%
3-Year Average 16.2 $149.04
+11%
5-Year Average 16.5 $151.63
+13%
Industry Average 12.3 $113.2
-16%
Country Average 14.4 $132.01
-2%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
$40.7B
/
Jan 2026
$2.8B
=
14.6
Current
$40.7B
/
Dec 2026
$3.2B
=
12.9
Forward
$40.7B
/
Dec 2027
$3.6B
=
11.3
Forward
$40.7B
/
Dec 2028
$4B
=
10.3
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close

Market Distribution

In line with most companies in the United States of America
Percentile
51th
Based on 9 875 companies
51th percentile
14.6
Low
0 — 10
Typical Range
10 — 21.5
High
21.5 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 10
Median 14.4
70th Percentile 21.5
Max 1 767 274.1

American Water Works Company Inc
Glance View

American Water Works Company Inc. stands as the largest publicly traded water and wastewater utility provider in the United States, serving millions of customers across 14 states. With a rich history dating back to 1886, the company thrives on its commitment to delivering safe, reliable, and sustainable water services, playing a vital role in the communities it serves. It operates through various segments—Water and Wastewater—catering to a diverse portfolio of residential, commercial, and industrial clients. Beyond simply providing water, American Water is a leader in innovation, investing heavily in modernizing infrastructure, improving efficiency, and advancing water conservation efforts. This strategic focus on sustainability not only enhances service quality but also mitigates risks associated with climate change and aging infrastructure, pivotal considerations for any forward-looking investor. For investors, American Water represents a compelling opportunity grounded in a stable revenue model, as its services span essential needs that remain relatively recession-proof. The company enjoys a distinct competitive advantage through its monopolistic service areas, ensuring a steady customer base and predictable cash flows. With its disciplined approach to capital investment and a commitment to dividend growth, American Water appeals to those seeking long-term value creation. As water scarcity and environmental concerns take center stage in global discussions, the company's proactive measures position it as an essential player in addressing future challenges, making it an increasingly attractive investment in today's ever-evolving market landscape.

AWK Intrinsic Value
144.13 USD
Undervaluation 7%
Intrinsic Value
Price $134.6
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