Is SJW Group overvalued or undervalued?

As of 28 April 2025, the valuation grade for SJW Group has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 18, an EV to EBITDA of 12.19, and a PEG ratio of 1.49, which suggest that the stock is aligned with its earnings growth expectations.
In comparison to peers, SJW Group's P/E ratio of 18 is significantly lower than American States Water Co., which has a P/E of 24.36, indicating that SJW Group may be more attractively priced relative to its earnings. California Water Service Group is even more expensive with a P/E of 20.46. Additionally, SJW Group's dividend yield of 1.55% provides a modest return to investors. Notably, while SJW Group has underperformed the S&P 500 over the long term, it has shown a positive return of 3.29% over the past week, contrasting with the S&P 500's slight decline.