Is American States Water Co. overvalued or undervalued?

As of 16 May 2025, the valuation grade for American States Water Co. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting a high valuation. The company is currently considered overvalued. Key ratios include a P/E ratio of 24, an EV to EBITDA of 16.39, and a PEG ratio of 4.98, all of which are above industry norms and suggest that the stock is priced at a premium compared to its earnings growth potential.
In comparison to peers, California Water Service Group has a P/E of 20.46 and SJW Group has a P/E of 18.02, both of which are lower than American States Water Co.'s P/E, reinforcing the notion of overvaluation. Additionally, while the company has shown a positive return of 13.36% over the past year compared to the S&P 500's 10.26%, this performance does not sufficiently justify the current high valuation metrics.