American Water Works Company, Inc (AWK) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
American Water Works is the largest investor-owned US water and wastewater utility, serving nearly 4 million customers in 14 states. It provides water and wastewater services to residential, commer...
American Water Works Company, Inc (AWK) currently trades at a P/E ratio of 23.77 (historical range: 17.40–45.05, median: 25.23), placing it at the 34th percentile — below its historical average, P/S ratio of 5.08 (range: 4.54–8.81, 13th percentile — cheap relative to its history), EV/EBITDA of 21.87 (range: 19.81–36.47, 13th percentile).
Over the historical period (2021-09-13 to 2026-10-16), American Water Works Company, Inc's P/E ratio has contracted by 10% over the observed period (from an average of 28.1 to 25.2).
American Water Works Company, Inc trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 23.77 | 25.23 | 34th | below its historical average |
| P/S Ratio | 5.08 | 6.06 | 13th | cheap relative to its history |
| EV/EBITDA | 21.87 | 24.77 | 13th | cheap relative to its history |
American Water Works Company, Inc (AWK) Valuation & P/E History
American Water Works Company, Inc (AWK) is a US-listed stock operating in the Utilities sector, specifically the Water Supply industry currently trading at $134.94 with a market capitalization of $26.8 billion. This page provides historical valuation analysis for AWK based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 23.77 is below the historical median of 25.23, placing AWK at the 34th percentile of its valuation range. The P/S ratio of 5.08 compares to a median of 6.06.
AWK Valuation Metrics & Historical Range
The valuation table above shows American Water Works Company, Inc's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether AWK is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests AWK is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for American Water Works Company, Inc.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is AWK Overvalued or Undervalued?
American Water Works Company, Inc trades well below its historical valuation range across most metrics. The overall valuation percentile of 20 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive AWK is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full AWK analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.AWK trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.