Essential Utilities Inc (WTRG) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Essential Utilities Inc stock $23.33, price $46.05, that is 49.3% below the price, quality 42 out of 100. Rating: strongly overvalued. Calculated from audited financials with 15 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $29.35 – $46.23 · fair‑value band $16.35 – $31.60 · the $46.05 price screens above the $23.33 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, and natural gas services in the United States. The company operates through Regulated Water; and Regulated Natural Gas segments.
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It also provides utility service line protection solutions and repair services to households; gas marketing and production activities; and natural gas distribution services.
The company serves approximately 5.5 million residential water, commercial water, fire protection, industrial water, wastewater, and other water and utility customers in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, and Kentucky under the Aqua and Peoples brands.
The company was formerly known as Aqua America, Inc. and changed its name to Essential Utilities, Inc. in February 2020. Essential Utilities, Inc. was founded in 1886 and is headquartered in Bryn Mawr, Pennsylvania.
Stock analysis
Essential Utilities Inc (WTRG) currently trades at $46.05, while our model-based Fair Value estimate is $23.33, 49% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $32.47 per share, and 1 of the 15 models we run sit above the $46.05 price.
Bear case: the Economic Profit group reads lowest at $6.61, and 14 of the 15 models stay below the price. Data coverage for this calculation is high.
Scenario range: $16.35 (bear) to $31.60 (bull), the price of $46.05 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 42/100 (below-average quality), in the Utilities sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Essential Utilities Inc reported revenue of $2.5B in FY2025 versus $1.9B in FY2021, a compound +7.1%/yr. Reported net income was $616M in FY2025, compounding +9.3%/yr from FY2021.
Key figures
Market cap $13.1B Large · P/E ratio 23.5 · P/S ratio 5.09 · EPS (TTM) $1.96 · Dividend yield 3.0% · Net margin 21.6% · Return on equity 8.1% · Return on assets (EBIT) 4.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 64 out of 100 (low confidence).
What moves the price
The share trades at its 52-week high and 28% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Utilities peers we cover trades at 2% fair-value upside, at −49%, WTRG screens richer than that median.
Fair Value models
Bear$16.35Fair Value $23.33Bull$31.60
Price $46.05 · Downside -49.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.5011 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director sold shares worth $112,915 and none bought.
SaleColleen ArnoldPresident - Aqua2,855 shares at $39.55$112,915Aug 7, 2026
Plus 6 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.50/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+18.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.1%
Start year 2020 (pandemic). Over 10 years: +11.8% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+18.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+15.0%
Dividend (yield on the price)3.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.14.4% vs 5.3%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.30% → 37%
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: The regulated water utility draws strength from infrastructure stability and merger-driven scale, yet negative free cash flow amid high debt limits its flexibility.
Main risk: Federal PFAS drinking water standards could require the company to spend at least hundreds of millions on new treatment facilities whose costs must be recovered through rate increases approved by state regulators.
Bull case: The company could leverage its scale after the American Water merger and successful rate cases to spread compliance costs efficiently while using operational data tools to optimise treatment investments.
Bear case: If regulators limit rate recovery or impose stricter timelines, the company might face sustained margin pressure and delayed infrastructure upgrades across its service territories.
Essential Utilities is progressing on its proposed merger with American Water to form a larger regulated water utility. The combination could bring scale advantages in a fragmented industry through a bigger rate base and shared operations. Integration challenges and regulatory hurdles, however, could slow or limit those gains. Will the merged entity capture more efficiencies than the standalone businesses would deliver on their own?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Utilities - Regulated Water · 64 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score42 · Below median
Fair Value upside−49.3% · Below median
Profitability
Return on equity (12 months)8.1% · Above median
Return on assets3.1% · Above median
Net margin (12 months)21.6% · Top 25%
Operating margin (12 months)35.4% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)3.1% · Below median
Dividend yield (12 months)3.0% · Above median
Balance sheet
Debt / equity1.18× · Highest 25%
Valuation Multiplesvs Utilities - Regulated Water median · lower = cheaper
P/E (12 months)23.5× · Pricier than median
P/B1.91× · Pricier than median
P/S (12 months)5.09× · Priciest 25%
EV/EBITDA15.7× · Pricier than median
PEG3.88× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)16· sector 32
PAST (return on equity)32· sector 30
HEALTH (low debt)41· sector 68
DIVIDEND (yield)60· sector 51
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Essential Utilities Inc (WTRG) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $23.33 versus a price of $46.05, about 49% lower (overvalued).
What is the fair value of WTRG?
Our model-based fair value for Essential Utilities Inc is $23.33 (as of Nov 4, 2026), built from audited fundamentals. The current price: $46.05.
What is the quality score of WTRG?
Essential Utilities Inc has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Essential Utilities Inc (WTRG)?
Our model-based price target is the fair value of $23.33 (as of Nov 4, 2026) from 15 valuation models. Cautious scenario $16.35, optimistic scenario $31.60. It is a calculation from audited fundamentals, not an analyst target.
What is the Essential Utilities Inc stock forecast for 2026?
Our models put fair value at $23.33, about 49% lower versus a price of $46.05 (overvalued). Cautious scenario $16.35, optimistic scenario $31.60. The calculation is refreshed regularly with new filings.
What is the revenue of Essential Utilities Inc (WTRG)?
Essential Utilities Inc reported trailing-twelve-month revenue of about $2.6B (latest available figure, as of Nov 4, 2026).
Does Essential Utilities Inc pay a dividend?
Essential Utilities Inc currently shows a dividend yield of 2.98% relative to its recent price (as of Nov 4, 2026).
What is the intrinsic value of Essential Utilities Inc (WTRG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Essential Utilities Inc it is $23.33 per share (as of Nov 4, 2026), against a price of $46.05. It is the blended result of 15 valuation models (cash flow, earnings, asset, dividend).
Is Essential Utilities Inc stock overvalued or undervalued in 2026?
As of Nov 4, 2026, WTRG trades above its calculated fair value: price $46.05, fair value $23.33, a gap of about −49% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of WTRG?
No. The price is what the market pays today ($46.05); the fair value is what the company's own numbers justify ($23.33). For Essential Utilities Inc the two are $22.72 per share apart. That gap is exactly why we show both numbers side by side.
How much is Essential Utilities Inc worth?
The market values Essential Utilities Inc at about $13.1B (market capitalisation, as of Nov 4, 2026). Per share that is $46.05; our models calculate a fair value of $23.33 per share.
What do the bullish and bearish scenarios say about WTRG?
Our models span a range for Essential Utilities Inc: cautious scenario $16.35, base $23.33, optimistic $31.60 per share (as of Nov 4, 2026, price $46.05). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of WTRG?
Essential Utilities Inc trades at a price-to-earnings ratio of 23.5 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $23.33 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2023, FY2024, FY2025 ex one-offs: 28.1. Other multiples: PEG 3.9, P/B 1.9, P/S 5.1, EV/EBITDA 15.7.
What is the PEG ratio of WTRG?
The PEG ratio of Essential Utilities Inc is 3.88 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Essential Utilities Inc (WTRG)?
Balance-sheet figures for Essential Utilities Inc (as of Nov 4, 2026): return on equity 8.1%, debt of 1.18 per unit of equity. They feed the Quality Score of 42/100, which measures business quality independently of the share price.
How far is WTRG from its 52-week high?
Essential Utilities Inc trades at $46.05, at its 52-week high of $46.05 and 28% above the low of $35.92 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $23.33 is for.
Which stocks are comparable to Essential Utilities Inc?
From the same area (Utilities) we also value American Water Works Company, Guangdong Investment Limited, Grandblue Environment Co, American States Water Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Essential Utilities Inc stock attractive at the current price?
The data as of Nov 4, 2026: price $46.05, calculated fair value $23.33 (−49%), Quality Score 42/100, from 15 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of WTRG calculated?
We run Essential Utilities Inc through 15 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $23.33, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Essential Utilities Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Essential Utilities Inc (WTRG)?
The closing price on Nov 5, 2026 was $46.05. Our model-based fair value is $23.33, about 49% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Essential Utilities Inc right now?
The price sits above even our optimistic bull case ($31.60). The favourable scenario is already priced in. Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts. A fairly wide model range ($16.35 to $31.60) leaves room in how you read the outcome.
Key figures of Essential Utilities Inc
How large is the market capitalisation of Essential Utilities Inc (WTRG)?
The market capitalisation of Essential Utilities Inc is $13.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Essential Utilities Inc (WTRG)?
The price-to-sales ratio of Essential Utilities Inc is 5.09 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Essential Utilities Inc (WTRG)?
Earnings per share at Essential Utilities Inc are $1.96 (price ÷ EPS = P/E 23.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Essential Utilities Inc (WTRG)?
The dividend yield of Essential Utilities Inc is 3.0% (payout 69.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Essential Utilities Inc (WTRG)?
The net margin of Essential Utilities Inc is 21.6% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Essential Utilities Inc (WTRG)?
The return on equity (ROE) of Essential Utilities Inc is 8.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Essential Utilities Inc (WTRG)?
On an EBIT basis the return on assets of Essential Utilities Inc is 4.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Essential Utilities Inc (WTRG)?
The operating margin of Essential Utilities Inc is 35.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Essential Utilities Inc (WTRG)?
Revenue at Essential Utilities Inc is growing +3.1% versus a year earlier (3y avg +2.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Essential Utilities Inc (WTRG)?
Earnings per share at Essential Utilities Inc are growing −2.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Essential Utilities Inc (WTRG) generate?
The free cash flow of Essential Utilities Inc is −$420M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Essential Utilities Inc (WTRG) carry?
The net debt of Essential Utilities Inc is $8.3B (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 4, 2026