P/E Ratio
Higher than 100% of Utilities sector peers
Updated 13h ago
Sector Performance
100th percentileAWK
24.5x
Sector Median
20.2x
Sector Avg
18.5x
Deep Analysis
The current P/E ratio of 24.5x means that investors are paying $24.50 for every $1.00 of American Water Works’ past-year earnings—a standard measure of how expensive a stock is relative to its profit.
This ratio sits well above the Utilities sector median of 20.2x, placing the company in the 100th percentile among its peers, meaning it is the priciest in the group on this metric. The trend over the last eight quarters is stable, with no change year-over-year (+0.0%) or quarter-over-quarter (+0.0%). A high P/E combined with a flat trend implies that the stock’s premium valuation is persistent, neither expanding to create additional risk nor contracting to present a buying opportunity. This metric supports the overall NEUTRAL verdict because the elevated and unchanging multiple confirms a steady but expensive valuation that does not clearly favor a bullish or bearish stance.
Frequently Asked Questions
What does the P/E Ratio tell investors about AWK?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does AWK's P/E Ratio compare to its sector?
AWK's P/E Ratio of 24.5x compares to a Utilities sector median of 20.2x, placing it in the 100th percentile.
Who are AWK's closest peers by P/E Ratio?
The closest Utilities peers by P/E Ratio include: AEP (20.2x), AEE (20.5x), PNW (19.0x), PEG (17.9x), ATO (23.2x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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24.5x
Sector Median
20.2x
Sector Avg
18.5x
How AWK's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.