American Water Fair Value
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The fair market value of 0HEW.L stock is 167.01 USD. Relative to the market price of 139.01 USD American Water is undervalued by 20.1%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
American Water Valuation
Current 0HEW.L share ticker price is 139.01 USD.
The fair value level of 167.01 USD can be considered as an effective entry point for long-term investors to start investing in 0HEW.L stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 20% lower its fair value
Current price is 15% higher its minimum value
Current price is 36% lower its maximum value
Market price:
0HEW.L stock is undervalued
It means the current price may concern as a Moderate Risk Entry Point
American Water Works Company Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
38.56
2
Median P/E over 5 years
34.02
3
Minimum P/E over 5 years
24.09
4
Earning per share (last 12 months)
4.91 USD
Maximum value
1
x
4
=
189.31 USD
Fair value
2
x
4
=
167.01 USD
Minimum value
3
x
4
=
118.27 USD
American Water Works Company Inc price metrics
2.86
Annual return (geometric mean)
27.69
Risk (standard deviation) of returns
β
0.45
Beta (volatility compared to market)