Is SJW Group overvalued or undervalued?

As of 3 October 2025, the valuation grade for SJW Group has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 18, an EV to EBITDA of 12.19, and a PEG ratio of 1.49. In comparison to peers, Essential Utilities, Inc. has a P/E of 16.89, while American States Water Co. shows a higher P/E of 22.76, indicating that SJW Group is positioned competitively within its industry.
Despite the fair valuation, SJW Group has underperformed relative to the S&P 500, with a year-to-date return of -4.25% compared to the index's 14.18%. This trend continues over longer periods, with a 5-year return of -23.44% versus the S&P 500's 100.56%, suggesting that while the stock may be fairly valued, its performance has lagged significantly behind broader market indices.