Is American States Water Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for American States Water Co. moved from expensive to fair. The company is fairly valued based on its current metrics. Key ratios include a P/E ratio of 24, an EV to EBITDA of 16.39, and a Price to Book Value of 3.09. In comparison, Essential Utilities, Inc. has a P/E of 16.89, while California Water Service Group is considered expensive with a P/E of 20.41.
Despite the fair valuation, American States Water Co. has underperformed relative to the S&P 500, with a year-to-date return of -2.90% compared to the S&P 500's 13.30%. Over three years, the company has seen a return of -12.81%, while the S&P 500 has soared by 81.19%, indicating potential concerns for investors.