Is American States Water Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for American States Water Co. has moved from expensive to fair, indicating a more favorable assessment of its stock. The company appears fairly valued based on its current metrics, with a P/E ratio of 24, a Price to Book Value of 3.09, and an EV to EBITDA ratio of 16.39. Compared to peers, American States Water Co. has a P/E ratio higher than Essential Utilities, Inc. at 16.89 and SJW Group at 17.09, yet lower than the very expensive Middlesex Water Co. at 22.05.
While specific return data is not available, the lack of a notable return comparison with the S&P 500 suggests that the stock's performance may not significantly deviate from broader market trends. Overall, American States Water Co. is positioned as fairly valued within its industry, reflecting a balanced outlook amidst its peer comparisons.