Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-07-02), Essential Utilities's Beta is 0.5259.
Essential Utilities (STU:A2A) Beta Explanation
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Water subindustry, Essential Utilities's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Essential Utilities Beta vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's Beta distribution charts can be found below:
* The bar in red indicates where Essential Utilities's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Essential Utilities (STU:A2A) has a Beta of 0.5259 as of Jul. 02, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Essential Utilities and its competitors.
Is Essential Utilities' Beta too high?
Essential Utilities' current Beta is 0.5259. Overall, Essential Utilities has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' Beta compare to AWR and CWT?
Essential Utilities' Beta of 0.5259 can be compared against companies in the Utilities - Regulated industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for an Utilities - Regulated company?
A good Beta depends on the Utilities - Regulated industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Essential Utilities and its competitors. Essential Utilities's current Beta is 0.5259. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essential Utilities stock overvalued right now?
Based on GuruFocus' analysis, Essential Utilities (STU:A2A) is currently considered Modestly Undervalued. The stock's GF Value™ is €36.89, compared to a current price of €33.30 — trading 9.7% below its estimated fair value. The current Beta is 0.5259. Essential Utilities' overall GF Score™ is 75/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Essential Utilities (STU:A2A), the current Beta is 0.5259 as of Jul. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Essential Utilities (STU:A2A) Overvalued in 2026?
Based on GuruFocus' analysis, Essential Utilities stock appears to be undervalued.
The current stock price of €33.30 is trading 9.7% below its estimated GF Value™ of €36.89.
GuruFocus considers Essential Utilities to be Modestly Undervalued.
Key valuation signals for STU:A2A:
Beta: 0.5259
GF Value™: €36.89 vs. price of €33.30 (9.7% below fair value)
No single metric tells the full story. See the STU:A2A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Essential Utilities is a Pennsylvania-based holding company for US water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states. Its largest service territory is in Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 740,000 gas distribution customers in Pennsylvania and Kentucky. It completed the sale of its West Virginia gas utility and the bulk of its nonregulated assets in 2024. Essential shareholders would own a 31% stake in American Water Works if the proposed all-stock merger closes in 2027.
75GF Score
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