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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: 130.7 USD 0.3% Market Closed
Market Cap: $25.5B

EV/EBIT

21.2
Current
11%
Cheaper
vs 3-y median of 23.9

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.

EV/EBIT
21.2
=
Enterprise Value
$40.7B
/
EBIT
$1.9B

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.

EV/EBIT
21.2
=
Enterprise Value
$40.7B
/
EBIT
$1.9B

Valuation Scenarios

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

If EV/EBIT returns to its 3-Year Average (23.9), the stock would be worth $147.21 (13% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-7%
Maximum Upside
+14%
Average Upside
5%
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%
Industry Average 21 $129.52
-1%
Country Average 19.6 $121
-7%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$40.7B
/
Jan 2026
$1.9B
=
21.2
Current
$40.7B
/
Dec 2026
$2.2B
=
18.4
Forward
$40.7B
/
Dec 2027
$2.5B
=
16.1
Forward
$40.7B
/
Dec 2028
$2.8B
=
14.7
Forward

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

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close

Market Distribution

In line with most companies in the United States of America
Percentile
55th
Based on 8 638 companies
55th percentile
21.2
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

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 9%
Intrinsic Value
Price $130.7
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