American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services on military installations; and undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (11 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $41.81 Implied EV: $24.60B |
Requires positive FCF to compute implied growth rate.
Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Price far exceeds estimated intrinsic value amid market euphoria — extreme risk of capital loss
