Is Global Water Resources, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Global Water Resources, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears to be overvalued, with a P/E ratio of 50, a Price to Book Value of 3.66, and an EV to EBIT of 40.08, all of which are considerably higher than typical industry metrics. In comparison, peers such as Artesian Resources Corp. have a P/E of 15.08 and an EV to EBITDA of 10.58, highlighting the stark contrast in valuation.
The company's recent performance has also been underwhelming, with a year-to-date return of -12.78%, significantly lagging behind the S&P 500's return of 12.22% during the same period. This trend continues over longer time frames, with a 3-year return of -22.79% compared to the S&P 500's 70.41%, reinforcing the notion that Global Water Resources, Inc. is not only overvalued but also struggling to deliver competitive returns.