What Is AWK Fair Value?
American Water Works (AWK) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, American Water Works (AWK) has a composite fair value estimate of $88.23 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $130.05, suggesting the stock is overvalued by 32.2%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$88.23
vs. current price of $130.05(-32.2%)
How Is AWK Fair Value Calculated?
Four independent models estimate what AWK is worth. Each uses different inputs and assumptions. The composite blends them by weight.
AWK Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$86.07
-33.8%Overvalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$101.14
-22.2%Overvalued
Inputs used
AWK Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$89.64
-31.1%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$60.85
-53.2%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $130.05 is 33.8% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $899.1M | $846.4M |
| Year 2 | $970.1M | $859.8M |
| Year 3 | $1.05B | $873.4M |
| Year 4 | $1.13B | $887.3M |
| Year 5 | $1.22B | $901.3M |
| Year 6 | $1.31B | $915.6M |
| Year 7 | $1.42B | $930.1M |
| Year 8 | $1.53B | $944.8M |
| Year 9 | $1.65B | $959.7M |
| Year 10 | $1.78B | $974.9M |
| Terminal Value | $49.12B | $26.87B |
What Are AWK's Key Financial Metrics?
Earnings & Growth
Current Price
$130.05
EPS (TTM)
$5.77
Forward P/E
19.8
Profit Margin
21.3%
Cash & Balance Sheet
Free Cash Flow
-1.8B
EBITDA
2.9B
Book Value
$58.70
Total Debt
16.1B
What Do Analysts Say About AWK?
Low
$128.00
Average
$141.45
High
$162.00
Upside
+8.8%
AWK Fair Value FAQ
What is the fair value of AWK?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), AWK's estimated fair value is $88.23. The stock is currently trading at $130.05, which makes it overvalued by our analysis.
How is AWK's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is AWK overvalued or undervalued?
Based on our analysis, AWK is overvalued. The current price of $130.05 is 32.2% above our estimated fair value of $88.23.
What do Wall Street analysts say about AWK?
11 analysts cover American Water Works with a consensus rating of "Hold." The average price target is $141.45, ranging from $128.00 to $162.00. This implies 8.8% upside from the current price.