American Water Works Company, Inc. (AWK) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-303.9%

-$297.43

vs $145.90 price

Levered DCF

-$398.70

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.06

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.89×	23.1×	26.99×	33.8×	27.21×	39.15×	35.82×	28.82×
P/B	2.35×	2.35×	2.6×	3.61×	4.71×	4.3×	3.63×	2.79×
P/S	4.95×	5.18×	6.02×	7.32×	8.75×	7.35×	6.16×	4.75×
EV / EBITDA	14.07×	14.33×	15.93×	20.06×	23.73×	19.87×	17.61×	14.66×
Gross margin	43.3%	60.3%	59.4%	58.1%	54.8%	57.1%	57.2%	57.0%
Operating margin	36.6%	36.7%	35.5%	33.6%	30.4%	33.0%	33.6%	32.0%
Net margin	21.6%	22.4%	22.3%	21.6%	32.1%	18.8%	17.2%	16.5%
Current ratio	0.46×	0.39×	0.65×	0.44×	0.73×	0.66×	0.63×	0.37×
Debt / equity	1.47×	1.37×	1.27×	1.62×	1.52×	1.71×	1.56×	1.47×
Interest coverage	3.06×	3.28×	3.27×	2.94×	2.97×	3.14×	3.15×	3.05×
Dividend yield	2.5%	2.4%	2.1%	1.7%	1.2%	1.4%	1.6%	2.0%
Payout ratio	57.0%	55.7%	56.4%	57.0%	33.9%	54.9%	56.8%	56.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.3%	10.2%	9.6%	10.7%	17.3%	11.0%	10.1%	9.7%
Return on invested capital	4.2%	4.3%	4.1%	3.9%	3.7%	4.1%	4.2%	3.9%
Return on assets	3.0%	3.2%	3.1%	3.0%	4.8%	2.9%	2.7%	2.7%
Free cash flow yield	-4.2%	-3.3%	-3.4%	-4.7%	-1.3%	-1.8%	-1.7%	-1.8%
Earnings yield	4.4%	4.3%	3.7%	3.0%	3.7%	2.6%	2.8%	3.5%
Enterprise value	$41.2B	$38.3B	$37.6B	$40.1B	$45.3B	$38.3B	$31.7B	$24.8B
Net debt / EBITDA	5.39×	5.24×	5.13×	6.19×	5.73×	5.44×	5.26×	5.01×
Cash conversion cycle (days)	83	11	24	34	12	19	10	19