---
title: American Water Works (AWK) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/awk
ticker: AWK
as_of: 2026-10-17
sector: Utilities
industry: Regulated Water
---
# American Water Works (AWK)

American Water Works (AWK) closed at $134.94 on Oct 16, 2026, undervalued by 11% vs its model value of $151.03 (from its own five-year median P/E applied to its earnings).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $134.94 (Oct 16, 2026) |
| Model value (from its own five-year median P/E applied to its earnings) | $151.03 |
| Price vs model | undervalued by 11% vs model |
| Range of that model | $135.74 – $170.25 |
| Market value | $26.8B |
| P/E (fiscal 2025) | 23.7 |
| Net margin (fiscal 2025) | 21.6% |
| Free cash flow (fiscal 2025) | -$1.1B |
| Dividend yield (trailing twelve months) | 2.55% |
| Beta | 0.57 |
| Cost of capital (WACC) | 6.53% |
| Business classification | Dividend Payer (Moderate growth (~10% recent), High profitability (22% net margin), Pays dividends, Highly cyclical earnings, Negative free cash flow) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.55% |
| Dividends per share, last 12 months | $3.45 |
| Coverage | — |
| Raised | 17+ years in a row |
| Growth over 5 years | 8.4% a year |
| Latest payment | $0.895, ex-date Aug 11, 2026, paid Sep 1, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 9, 2021 | $2.31 |
| To Aug 8, 2022 | $2.52 |
| To Aug 7, 2023 | $2.73 |
| To Aug 13, 2024 | $2.95 |
| To Aug 12, 2025 | $3.19 |
| Trailing twelve months (to Aug 11, 2026) | $3.45 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | cross check | $77.39 | $12.87 | $330.39 |
| DCF · Perpetuity growth · 10y | cross check | $102.33 | $28.84 | $395.11 |
| DCF · EBITDA exit · 5y | cross check | $231.67 | $123.07 | $360.33 |
| DCF · EBITDA exit · 10y | cross check | $240.96 | $120.23 | $404.96 |
| P/E · peers | cross check | $118.27 | $95.26 | $122.54 |
| P/E · own history | primary | $151.03 | $135.74 | $170.25 |
| PEG | sanity check | $61.16 | $61.16 | $61.16 |
| EV/EBITDA · peers | cross check | $100.69 | $81.03 | $119.20 |
| EV/Revenue · peers | cross check | $10.92 | $0.00 | $30.75 |
| Earnings power value | cross check | $0.00 | $0.00 | $0.00 |
| Dividend discount | cross check | $77.02 | $51.68 | $132.62 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| May 13, 2026 | Nathoo Raffiq | Director | Grant / award | 1,374 | $0 |
| May 13, 2026 | MCGUIGAN STUART M | Director | Grant / award | 1,374 | $0 |
| May 13, 2026 | Marberry Michael | Director | Grant / award | 1,374 | $0 |
| May 13, 2026 | Kurz Karl F | Director | Grant / award | 2,159 | $0 |
| May 13, 2026 | KAMPLING PATRICIA L | Director | Grant / award | 1,374 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 17, 2026 | 8-K | 8.01 Other Events | https://www.sec.gov/Archives/edgar/data/1410636/000141063626000143/awk-20260915.htm |
| Sep 16, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1410636/000119312526392966/d36761d8k.htm |
| Sep 14, 2026 | 424B5 | Prospectus supplement | https://www.sec.gov/Archives/edgar/data/1410636/000119312526389922/d190116d424b5.htm |
| Sep 9, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1410636/000141063626000131/awk-20260909.htm |
| Aug 31, 2026 | 8-K | 7.01 Regulation FD Disclosure | https://www.sec.gov/Archives/edgar/data/1410636/000141063626000128/awk-20260828.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Mairs & Power | 2026-06-30 | 5,000 | $657,900 |
| First Eagle | 2026-06-30 | 602 | $79,211 |

2 tracked managers in all.

## About

American Water Works Company, Inc. operates across the United States, delivering essential water and wastewater solutions via its various subsidiary companies. Its operations extend to around 1,700 communities situated across 14 states, catering to an active customer base of roughly 3.4 million. The firm caters to a broad spectrum of clients. These include individual households, commercial enterprises (such as food and beverage suppliers, property developers, and energy companies), and both public and private fire service customers. Industrial clients, like large-scale manufacturers, mining, and production facilities, also utilize its services. Furthermore, American Water Works supports public authorities, encompassing government facilities, schools, and universities, alongside other utility providers and community water and wastewater infrastructure. Beyond these, the company extends it…

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Source: https://sweetvaluelab.com/stocks/awk (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.