Is Middlesex Water Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Middlesex Water Co. has moved from very expensive to expensive, indicating a slight improvement but still suggesting that the stock may be overvalued. The company appears overvalued based on its P/E ratio of 23, which is higher than the peer average of 22.05, and an EV to EBITDA ratio of 25.42, which also exceeds the peer average of 16.30. Additionally, the PEG ratio stands at 1.26, further supporting the notion of overvaluation when compared to its peers.
In comparison to its industry peers, Essential Utilities, Inc. has a fair valuation with a P/E of 16.89 and an EV to EBITDA of 14.36, while American States Water Co. also shows a fair valuation with a P/E of 22.76 and an EV to EBITDA of 15.88. Notably, Middlesex Water Co. has underperformed against the S&P 500 over the last year, with a return of -11.59% compared to the S&P 500's 14.08%, which reinforces the view that the stock may not be a favorable investment at its current valuation.