Latest Ratios: P/E Ratio 23.3x · EV/EBITDA 15.2x · ROE 10.5%. (1992–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $26.4B | $25.4B | $24.3B | $25.5B | $27.7B | $34.4B | $27.9B | $22.2B | $16.3B | $16.4B | $13.0B |
| Enterprise Value | $42.2B | $41.2B | $38.3B | $37.6B | $40.1B | $45.3B | $38.4B | $31.7B | $24.8B | $24.0B | $20.1B |
| P/E Ratio → | 23.34 | 22.89 | 23.10 | 26.99 | 33.80 | 27.21 | 39.35 | 35.82 | 28.82 | 38.44 | 27.62 |
| P/S Ratio | 5.14 | 4.95 | 5.18 | 6.02 | 7.32 | 8.75 | 7.40 | 6.16 | 4.75 | 4.88 | 3.92 |
| P/B Ratio | 2.39 | 2.35 | 2.35 | 2.60 | 3.61 | 4.71 | 4.33 | 3.63 | 2.79 | 3.04 | 2.48 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 12.84 | 12.36 | 11.87 | 13.59 | 25.04 | 23.85 | 19.59 | 16.08 | 11.79 | 11.30 | 10.15 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.02 | 8.17 | 8.88 | 10.58 | 11.53 | 10.17 | 8.79 | 7.21 | 7.16 | 6.07 |
| EV / EBITDA | 15.23 | 14.87 | 15.28 | 17.02 | 20.87 | 24.74 | 20.74 | 17.66 | 15.07 | 13.78 | 12.94 |
| EV / EBIT | 22.48 | 20.25 | 20.35 | 22.70 | 29.71 | 35.57 | 29.07 | 26.02 | 21.61 | 18.96 | 18.09 |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.3% | 43.3% | 60.3% | 59.4% | 58.1% | 54.8% | 57.1% | 57.2% | 57.0% | 59.0% | 54.5% |
| Operating Margin | 36.6% | 36.6% | 36.7% | 35.5% | 33.6% | 30.4% | 33.0% | 33.6% | 32.0% | 37.3% | 32.7% |
| Net Profit Margin | 21.6% | 21.6% | 22.4% | 22.3% | 21.6% | 32.1% | 18.8% | 17.2% | 16.5% | 12.7% | 14.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 10.4% | 10.8% | 10.9% | 18.4% | 11.3% | 10.4% | 10.1% | 8.0% | 9.1% |
| ROA | 3.2% | 3.2% | 3.3% | 3.3% | 3.0% | 5.0% | 3.0% | 2.8% | 2.8% | 2.2% | 2.6% |
| ROIC | 5.5% | 5.5% | 5.6% | 5.4% | 5.0% | 5.1% | 5.8% | 6.1% | 6.0% | 7.4% | 6.8% |
| ROCE | 6.1% | 6.1% | 5.9% | 5.7% | 5.2% | 5.2% | 5.9% | 6.1% | 6.1% | 7.5% | 6.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.47 | 1.47 | 1.37 | 1.27 | 1.62 | 1.52 | 1.71 | 1.56 | 1.47 | 1.43 | 1.38 |
| Debt / EBITDA | 5.74 | 5.74 | 5.63 | 5.63 | 6.48 | 6.04 | 5.95 | 5.31 | 5.22 | 4.42 | 4.63 |
| Net Debt / Equity | — | 1.46 | 1.36 | 1.24 | 1.61 | 1.50 | 1.62 | 1.55 | 1.45 | 1.42 | 1.36 |
| Net Debt / EBITDA | 5.70 | 5.70 | 5.59 | 5.49 | 6.43 | 5.97 | 5.66 | 5.28 | 5.15 | 4.39 | 4.59 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 3.31 | 3.31 | 3.60 | 3.60 | 3.12 | 3.16 | 3.33 | 3.16 | 3.18 | 3.56 | 3.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.46 | 0.46 | 0.39 | 0.65 | 0.44 | 0.73 | 0.66 | 0.63 | 0.37 | 0.31 | 0.33 |
| Quick Ratio | 0.44 | 0.44 | 0.35 | 0.59 | 0.41 | 0.70 | 0.65 | 0.61 | 0.35 | 0.29 | 0.31 |
| Cash Ratio | 0.04 | 0.04 | 0.06 | 0.15 | 0.03 | 0.05 | 0.19 | 0.03 | 0.06 | 0.02 | 0.03 |
| Asset Turnover | — | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.16 | 0.16 | 0.17 | 0.18 |
| Inventory Turnover | 26.01 | 26.01 | 18.04 | 15.36 | 16.21 | 31.18 | 34.51 | 35.09 | 36.07 | 33.61 | 38.56 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | 2.5% | 2.4% | 2.1% | 1.7% | 1.2% | 1.4% | 1.6% | 2.0% | 1.8% | 2.0% |
| Payout Ratio | 57.0% | 57.0% | 55.7% | 56.4% | 57.0% | 33.9% | 54.9% | 56.8% | 56.3% | 67.8% | 55.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 4.4% | 4.3% | 3.7% | 3.0% | 3.7% | 2.5% | 2.8% | 3.5% | 2.6% | 3.6% |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.3% | 0.3% | 0.5% |
| Total Shareholder Yield | 2.4% | 2.5% | 2.4% | 2.1% | 1.7% | 1.2% | 1.4% | 1.7% | 2.2% | 2.1% | 2.5% |
| Shares Outstanding | — | $195M | $195M | $193M | $182M | $182M | $182M | $181M | $180M | $179M | $179M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AWK stock.
American Water Works Company, Inc.'s current P/E ratio is 23.3x. The historical average is 26.4x. This places it at the 50th percentile of its historical range.
American Water Works Company, Inc.'s current EV/EBITDA is 15.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.8x.
American Water Works Company, Inc.'s return on equity (ROE) is 10.5%. The historical average is 7.6%.
Based on historical data, American Water Works Company, Inc. is trading at a P/E of 23.3x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
American Water Works Company, Inc.'s current dividend yield is 2.44% with a payout ratio of 57.0%.
American Water Works Company, Inc. has 43.3% gross margin and 36.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
American Water Works Company, Inc.'s Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Regulatory lag and rate case outcomes
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Steady Growth
AWK trades at 23.76x trailing earnings, a premium to peers like WTRG at 18.08x, supported by its 2.4% dividend yield and consistent rate base expansion, according to current market data.
The P/E premium over Essential Utilities suggests the market is pricing in AWK's superior growth prospects and regulatory track record. With a forward P/E of 22.28x, the multiple is expected to compress slightly, implying earnings growth is anticipated. The dividend yield of 2.4% is below the peer average, but the payout ratio of 55.2% indicates room for dividend growth, which may justify the premium.
Earned ROE Approaching Authorized Levels
AWK's quarterly ROE averaged 2.5% over the last year, annualizing to roughly 10%, which appears close to typical authorized returns, as reported in financial statements, indicating constructive regulatory outcomes.
The quarterly ROE figures, ranging from 1.8% to 3.5%, annualize to approximately 7-14%, with the most recent quarter at 2.8% (annualized 11.2%). This suggests AWK is earning near its allowed return, reflecting efficient cost recovery and timely rate case implementations. However, the variability across quarters highlights the impact of seasonal revenue patterns and regulatory lag, which investors should monitor.
Operating Margin Expansion Signals Effective Recovery
Operating margin improved to 40.0% in 2026Q2 from 38.3% a year earlier, as per AWK's quarterly reports, indicating that cost recovery mechanisms are effectively passing through higher operating costs.
The consistent operating margin above 30% across all quarters underscores AWK's ability to recover costs through rates. The increase in D&A from $188M to $240M over the period reflects growing rate base, and the margin expansion suggests that revenue growth is outpacing expense growth, likely due to regulatory mechanisms like revenue decoupling. This supports the sustainability of earnings.
Leverage Creeps Higher Amid CAPEX Surge
Debt-to-capital ratio rose to 0.58 in 2026Q2 from 0.57 a year earlier, while interest coverage improved to 3.43x, according to balance sheet data, indicating manageable leverage despite heavy investment.
The slight increase in leverage is consistent with AWK's aggressive capital expenditure program, which is expected to drive future rate base growth. Interest coverage of 3.43x remains adequate for a utility, though it is below the 4.43x seen in 2024Q3, reflecting higher debt levels and rising interest costs. FFO/Debt of 4.68% is low, but this is typical for utilities with high capital intensity, and the company's access to capital markets appears sufficient.
Dividend Coverage Comfortable Despite Payout Fluctuations
Dividend payout ratio averaged 61% over the last year, with a low of 42.5% in 2025Q3, as per AWK's financial statements, indicating dividends are well-covered by earnings and cash flows.
The payout ratio has been volatile, spiking to 82.7% in 2026Q1 due to lower earnings, but the average remains within a sustainable range. Operating cash flow coverage of dividends averaged 3.2x, providing a cushion for the dividend. However, the heavy CAPEX program means internal cash flows are insufficient to fund all investments, so dividend growth may be limited to maintain credit metrics.
P/E Misapplied to Utility Growth
Comparing AWK's P/E to industrial companies is misleading; instead, investors should focus on the spread between earned ROE and authorized ROE, as per regulatory filings, to gauge true value.
Utilities are bond proxies, so P/E is anchored to interest rates rather than growth. AWK's P/E of 23.76x may appear high relative to the market, but it reflects the stability of regulated cash flows and the allowed return. A more appropriate metric is the ratio of market-to-book (P/B of 2.44), which indicates the premium over regulatory asset value. Additionally, the earned ROE relative to the authorized ROE is critical; if the earned ROE falls below allowed, the premium may compress. Investors should also consider the impact of AFUDC, which inflates earnings without immediate cash flow, making cash-based metrics like FFO/Debt more relevant.