Is Essential Utilities, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Essential Utilities, Inc. moved from expensive to fair. The company appears to be fairly valued based on its current metrics. The P/E ratio stands at 17, the Price to Book Value is 1.65, and the EV to EBITDA is 14.79, indicating that the stock is reasonably priced relative to its earnings and book value.
In comparison to its peers, Essential Utilities, Inc. has a P/E ratio of 16.89, which is lower than American States Water Co. at 22.76 and slightly higher than SJW Group at 17.09. The PEG ratio of 1.09 also suggests that the stock is fairly valued when considering its growth prospects. While the company's one-year return of 2.92% lags behind the S&P 500's 14.08%, its year-to-date return of 13.57% slightly outperforms the index's 13.30%, reinforcing the notion that it is currently fairly valued.