Is SJW Group overvalued or undervalued?

As of 23 July 2025, the valuation grade for SJW Group has moved from attractive to fair, indicating a shift in its perceived value. Based on the metrics provided, SJW Group appears to be fairly valued. The company's P/E ratio stands at 18, while its EV to EBITDA ratio is 12.19, and the PEG ratio is 1.49. In comparison to peers, Essential Utilities, Inc. has a P/E of 16.89, and American States Water Co. has a higher P/E of 22.76, suggesting that SJW Group is positioned competitively within its industry.
Despite its fair valuation, SJW Group has underperformed relative to the S&P 500, with a one-year return of -18.58% compared to the index's 17.14%. This significant lag in performance may indicate that the market has concerns about the company's growth prospects or operational efficiency, reflected in its ROCE of 5.51% and ROE of 7.07%. Overall, while SJW Group is fairly valued based on its current ratios, the recent stock performance raises questions about its future potential.