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 shift towards a more cautious outlook. The company appears overvalued based on its current valuation ratios, including a P/E ratio of 23, an EV to EBITDA of 16.44, and a Price to Book Value of 2.23. In comparison, peers such as Essential Utilities, Inc. have a fair valuation with a P/E of 16.89, while American States Water Co. shows a P/E of 22.76, suggesting that Middlesex Water Co. is trading at a premium relative to some of its competitors.
Additionally, the company's recent stock performance has been mixed; while it outperformed the S&P 500 in the short term with a 1-week return of 1.91% compared to 1.70%, it has significantly lagged over longer periods, with a 3-year return of -30.33% versus 81.19% for the S&P 500. This underperformance reinforces the notion that Middlesex Water Co. may be overvalued in the current market environment.