Is Essential Utilities, Inc. overvalued or undervalued?

Sep 20 2025 05:33 PM IST
share
Share Via
As of July 31, 2025, Essential Utilities, Inc. is fairly valued with a P/E ratio of 17 and has underperformed the S&P 500, returning 2.45% year-to-date compared to the index's 12.22%.
As of 31 July 2025, the valuation grade for Essential Utilities, Inc. moved from expensive to fair. The company is currently fairly valued based on its valuation metrics. Key ratios include a P/E ratio of 17, an EV to EBITDA of 14.79, and a Price to Book Value of 1.65, which align closely with its peers, such as American States Water Co. with a P/E of 22.76 and SJW Group at 17.09.

While Essential Utilities has shown a fair valuation, it has underperformed compared to the S&P 500, with a year-to-date return of 2.45% versus the S&P 500's 12.22%. This trend continues over longer periods, highlighting a significant lag in performance that may affect investor sentiment despite the fair valuation.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News