Is Essential Utilities, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Essential Utilities, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current 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.
In terms of performance, Essential Utilities has shown a 1-month return of 10.56%, outperforming the S&P 500's return of 0.96% in the same period, although it lags behind the index over longer time frames. Overall, the company's valuation metrics suggest it is positioned fairly within its industry, reflecting a balanced investment opportunity.