American Water Works Company Inc
NYSE:AWK
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (23.9), the stock would be worth $147.21 (13% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 21.2 | $130.7 |
0%
|
| 3-Year Average | 23.9 | $147.21 |
+13%
|
| 5-Year Average | 24.2 | $149.37 |
+14%
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| Industry Average | 21 | $129.52 |
-1%
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| Country Average | 19.6 | $121 |
-7%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$40.7B
|
/ |
Jan 2026
$1.9B
|
= |
|
|
$40.7B
|
/ |
Dec 2026
$2.2B
|
= |
|
|
$40.7B
|
/ |
Dec 2027
$2.5B
|
= |
|
|
$40.7B
|
/ |
Dec 2028
$2.8B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
American Water Works Company Inc
NYSE:AWK
|
25.5B USD | 21.2 | 23 | |
| BR |
|
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP
BOVESPA:SBSP3
|
119.6B BRL | 10.9 | 13.5 | |
| UK |
|
Severn Trent PLC
LSE:SVT
|
9.3B GBP | 23.5 | 29.6 | |
| UK |
|
United Utilities Group PLC
LSE:UU
|
9.2B GBP | 21.2 | 22.9 | |
| US |
|
Essential Utilities Inc
NYSE:WTRG
|
11B USD | 20.8 | 17.8 | |
| BR |
B
|
Basic Sanitation Company of the State of Sao Paulo SABESP
SWB:SAJA
|
7.7B EUR | 5.5 | 5.5 | |
| HK |
|
Guangdong Investment Ltd
HKEX:270
|
52.8B HKD | 6.8 | 11.3 | |
| BR |
|
Companhia de Saneamento de Minas Gerais Copasa MG
BOVESPA:CSMG3
|
21.9B BRL | 13.3 | 15.3 | |
| HK |
|
Beijing Enterprises Water Group Ltd
HKEX:371
|
27.1B HKD | 15.9 | 18.6 | |
| CN |
|
Grandblue Environment Co Ltd
SSE:600323
|
23.3B CNY | 16.9 | 12.4 | |
| UK |
|
Pennon Group PLC
LSE:PNN
|
2.6B GBP | 30.6 | 86.3 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
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.