Is The York Water Co. overvalued or undervalued?

As of 3 September 2025, the valuation grade for The York Water Co. has moved from expensive to very expensive, indicating a significant concern regarding its current valuation. The company appears to be overvalued based on its P/E ratio of 23, which is higher than peers such as Artesian Resources Corp. at 15.08 and Aris Water Solutions, Inc. at 21.89. Additionally, the EV to EBITDA ratio of 16.15 further supports this conclusion, especially when compared to Artesian's 10.58, suggesting that The York Water Co. is trading at a premium relative to its industry counterparts.
The company's return performance has also been notably poor, with a year-to-date decline of 6.36% compared to a 12.22% gain in the S&P 500, and a staggering 21.46% drop over the past year against the index's 17.14% increase. This underperformance reinforces the view that The York Water Co. is overvalued, as it struggles to deliver returns in line with broader market trends.