Is Middlesex Water Co. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Middlesex Water Co. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is overvalued based on its current metrics, with a P/E ratio of 23, a Price to Book Value of 2.23, and an EV to EBITDA of 16.44, which are all higher than many of its peers. For instance, Essential Utilities, Inc. has a P/E of 16.89 and an EV to EBITDA of 14.36, suggesting that Middlesex Water Co. is trading at a premium compared to this competitor.
The stock has underperformed relative to the S&P 500, with a one-year return of -21.01% compared to the index's 17.14%, and a three-year return of -40.38% versus 70.41% for the S&P 500. These figures reinforce the notion that Middlesex Water Co. is overvalued in the current market environment.