American Water Valuation
| AWC Stock | EUR 119.50 1.70 1.40% |
At this time, the firm appears to be overvalued. American Water Works shows a prevailing Real Value of €102.95 per share. The current price of the firm is €119.5. Our model approximates the value of American Water Works from analyzing the firm fundamentals such as return on equity of 0.11, and Profit Margin of 0.22 % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
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.
The fair value of the American stock is determined by what a typical buyer is willing to pay for full or partial control of American Water Works. Since American Water is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Water's intrinsic value may or may not be the same as its current market price, 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 119.5 | Real 102.95 | Hype 119.5 |
The real value of American Stock, also known as its intrinsic value, is the underlying worth of American Water Works Company, which is reflected in its stock price. It is based on American Water's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of American Water's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
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 Total Value Analysis
American Water Works is presently estimated to have takeover price of 0 with market capitalization of 23.78 B, debt of 10.93 B, and cash on hands of 133 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the American Water fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
0 | 23.78 B | 10.93 B | 133 M |
American Water Investor Information
About 90.0% of the company shares are held by institutions such as insurance companies. The company last dividend was issued on the 6th of February 2023. Based on the analysis of American Water's profitability, liquidity, and operating efficiency, American Water Works is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.American Water Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Water has an asset utilization ratio of 13.65 percent. This implies that the Company is making €0.14 for each dollar of assets. An increasing asset utilization means that American Water Works is more efficient with each dollar of assets it utilizes for everyday operations.American Water Ownership Allocation
American Water holds a total of 181.86 Million outstanding shares. The majority of American Water Works outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in American Water Works to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in American Water. Please pay attention to any change in the institutional holdings of American Water Works as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.American Water Profitability Analysis
The company reported the revenue of 3.79 B. Net Income was 820 M with profit before overhead, payroll, taxes, and interest of 2.2 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates American Water's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in American Water and how it compares across the competition.
About American Water Valuation
The stock valuation mechanism determines American Water's current worth on a weekly basis. Our valuation model uses a comparative analysis of American Water. We calculate exposure to American Water's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of American Water's related companies.American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States and Canada. The company was founded in 1886 and is headquartered in Camden, New Jersey. American Water operates under Utilities - Regulated Water classification in Germany and is traded on Frankfurt Stock Exchange. It employs 7100 people.
8 Steps to conduct American Water's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates American Water's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct American Water's valuation analysis, follow these 8 steps:- Gather financial information: Obtain American Water's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine American Water's revenue streams: Identify American Water's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research American Water's industry and market trends, including the size of the market, growth rate, and competition.
- Establish American Water's growth potential: Evaluate American Water's management, business model, and growth potential.
- Determine American Water's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate American Water's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for American Stock analysis
When running American Water's price analysis, check to measure American Water's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Water is operating at the current time. Most of American Water's value examination focuses on studying past and present price action to predict the probability of American Water's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Water's price. Additionally, you may evaluate how the addition of American Water to your portfolios can decrease your overall portfolio volatility.
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