Is Consolidated Water Co. Ltd. overvalued or undervalued?

Jun 25 2025 08:31 AM IST
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As of May 13, 2025, Consolidated Water Co. Ltd. is considered overvalued at $30.03, with a P/E ratio of 26 and higher than its peers, despite strong performance, indicating a shift from fair to expensive valuation.
As of 13 May 2025, the valuation grade for Consolidated Water Co. Ltd. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued at its current price of $30.03, particularly when compared to its peers. Key ratios include a P/E ratio of 26, an EV to EBITDA of 14.68, and a Price to Book Value of 2.03, all of which suggest that the stock is trading at a premium relative to its earnings and assets.

In comparison to its peers, Consolidated Water Co. Ltd. has a higher P/E ratio than Middlesex Water Co. (23.09) and Select Water Solutions, Inc. (23.63), both of which are also considered very expensive. Additionally, while the company has shown strong returns, outperforming the S&P 500 over various time frames, this performance does not justify the current valuation, reinforcing the conclusion that the stock is overvalued in the market.
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