American Water Works Stock Current Valuation
| AWK Stock | USD 141.13 0.68 0.48% |
Valuation analysis of American Water Works helps investors to measure American Water's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns.
Undervalued
Today
Please note that American Water's price fluctuation is very steady at this time. Calculation of the real value of American Water Works is based on 3 months time horizon. Increasing American Water's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
American Water's intrinsic value may or may not be the same as its current market price of 141.13, 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 141.13 | Real 162.79 | Hype 141.13 | Naive 135.9 |
The intrinsic value of American Water's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence American Water's stock price.
Estimating the potential upside or downside of American Water Works helps investors to forecast how American 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 American Water more accurately as focusing exclusively on American Water's fundamentals will not take into account other important factors: American Water Works Company Current Valuation Analysis
American Water's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current American Water Current Valuation | 41.71 B |
Most of American Water's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, American Water Works is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, American Water Works has a Current Valuation of 41.71 B. This is 295.76% higher than that of the Water Utilities sector and significantly higher than that of the Utilities industry. The current valuation for all United States stocks is 150.88% lower than that of the firm.
American Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses American Water's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of American Water could also be used in its relative valuation, which is a method of valuing American Water by comparing valuation metrics of similar companies.American Water is currently under evaluation in current valuation category among its peers.
American Fundamentals
| Return On Equity | 0.1 | ||||
| Return On Asset | 0.0346 | ||||
| Profit Margin | 0.22 % | ||||
| Operating Margin | 0.34 % | ||||
| Current Valuation | 41.71 B | ||||
| Shares Outstanding | 194.95 M | ||||
| Shares Owned By Insiders | 0.14 % | ||||
| Shares Owned By Institutions | 95.16 % | ||||
| Number Of Shares Shorted | 5.1 M | ||||
| Price To Earning | 38.22 X | ||||
| Price To Book | 2.68 X | ||||
| Price To Sales | 5.90 X | ||||
| Revenue | 4.68 B | ||||
| Gross Profit | 2.83 B | ||||
| EBITDA | 2.67 B | ||||
| Net Income | 1.05 B | ||||
| Cash And Equivalents | 85 M | ||||
| Cash Per Share | 0.53 X | ||||
| Total Debt | 14.11 B | ||||
| Debt To Equity | 1.55 % | ||||
| Current Ratio | 0.59 X | ||||
| Book Value Per Share | 53.01 X | ||||
| Cash Flow From Operations | 2.04 B | ||||
| Short Ratio | 3.41 X | ||||
| Earnings Per Share | 5.39 X | ||||
| Price To Earnings To Growth | 3.69 X | ||||
| Target Price | 137.44 | ||||
| Number Of Employees | 6.7 K | ||||
| Beta | 0.68 | ||||
| Market Capitalization | 27.65 B | ||||
| Total Asset | 32.83 B | ||||
| Retained Earnings | 2.11 B | ||||
| Working Capital | (1.94 B) | ||||
| Current Asset | 657 M | ||||
| Current Liabilities | 1.53 B | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 1.63 % | ||||
| Net Asset | 32.83 B | ||||
| Last Dividend Paid | 3.0 |
About American Water Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze American Water Works's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Water using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Water Works based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Water. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Water listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of American Water Works is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Water's value that differs from its market value or its book value, called intrinsic value, which is American Water's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Water's market value can be influenced by many factors that don't directly affect American Water's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Water's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Water is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Water's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.