Is American Water Works Company, Inc. (AWK) Undervalued?
Based on the current stock price of $130.55 and a P/E ratio of 22.94,American Water Works Company, Inc. has a PEG ratio of 3.67.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 3.67, AWK appears to be potentially overvalued relative to its growth rate of 6.25%.
Based on a PEG ratio of 2.61 (adjusted for dividends).
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How we analyzed AWK
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 22.94and dividing it by the annual growth rate of 6.25%.
PEG = 22.94 (P/E) ÷ 6.25 (Growth) = 3.67
Frequently Asked Questions about AWK
What is the current PEG Ratio for American Water Works Company, Inc. (AWK)?+
The current PEG Ratio for American Water Works Company, Inc. is 3.67. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is AWK stock undervalued right now?+
Based on the PEG ratio of 3.67, American Water Works Company, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for AWK?+
The PEGY ratio for American Water Works Company, Inc. is 2.61. This metric accounts for dividend yield (2.54%), providing a more complete valuation picture.