Is Consolidated Water Co. Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Consolidated Water Co. Ltd. moved from fair to very expensive, indicating a significant shift in its valuation outlook. The company appears to be overvalued, with a P/E ratio of 26, compared to peers such as Aris Water Solutions, Inc. at 21.89 and Artesian Resources Corp. at 15.08. Additionally, the EV to EBITDA ratio stands at 14.68, which is higher than the industry average, reinforcing the perception of overvaluation.
The company’s Price to Book Value is 2.03, and its EV to Sales ratio is 2.55, both of which suggest that investors are paying a premium for its assets and sales relative to its peers. Notably, Consolidated Water Co. Ltd. has outperformed the S&P 500 with a year-to-date return of 39.98% compared to the index's 13.30%, which may have contributed to the elevated valuation levels.