Is Middlesex Water Co. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Middlesex Water Co. has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 23, an EV to EBITDA of 16.44, and a PEG ratio of 1.26, which are higher than some of its peers. For instance, Essential Utilities, Inc. has a P/E of 16.89 and an EV to EBITDA of 14.36, indicating that Middlesex Water Co. is trading at a premium compared to this competitor.
Additionally, the stock has underperformed relative to the S&P 500, with a year-to-date return of 1.79% compared to the index's 14.18%, and a three-year return of -34.26% versus 82.57% for the S&P 500. This further reinforces the notion that Middlesex Water Co. is overvalued in the current market environment.