Is California Water Service Group overvalued or undervalued?

As of 31 October 2025, the valuation grade for California Water Service Group has moved from very expensive to expensive. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 20, which is higher than peers such as Essential Utilities, Inc. at 16.89 and SJW Group at 17.09. Additionally, the EV to EBITDA ratio is 12.46, which is also elevated compared to the industry averages.
In terms of performance, California Water Service Group has shown a negative return of -6.20% over the past year, while the S&P 500 has gained 19.89% during the same period, indicating a significant underperformance relative to the broader market. This further reinforces the notion that the stock may be overvalued given its lackluster returns compared to both its peers and the market.