Is Middlesex Water Co. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Middlesex Water Co. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company is currently considered overvalued. Key ratios include a P/E ratio of 23, an EV to EBITDA of 16.44, and a Price to Book Value of 2.23, which are all higher than many of its peers. For instance, Essential Utilities, Inc. has a P/E of 16.89, while American States Water Co. stands at 22.76, both suggesting that Middlesex Water Co. is trading at a premium compared to these companies.
In terms of stock performance, Middlesex Water Co. has underperformed relative to the S&P 500 over multiple time frames, with a 1-year return of -17.85% compared to the S&P 500's 16.64%, and a 5-year return of -13.14% against the S&P's impressive 100.77%. This underperformance further reinforces the notion that the stock may be overvalued in the current market context.