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American Water Works CoAWK +1.75%78 Debt-to-EBITDA is 5.96 as of Mar. 2026, which is 13% above its 10-year median of 5.28. GuruFocus rates AWK with a GF Score™ of 78/100 and a GF Value™ of $155.45 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 449 Utilities - Regulated companies, American Water Works Co ranks worse than 65.92% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for American Water Works Co's Debt-to-EBITDA or its related term are showing as below:
AWK'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 4.13 Med: 5.28 Max: 5.96
Current: 5.3
During the past 13 years, the highest Debt-to-EBITDA Ratio of American Water Works Co was 5.96. The lowest was 4.13. And the median was 5.28.
AWK's Debt-to-EBITDA is ranked worse than 65.92% of 449
companies
in the Utilities - Regulated industry
Industry Median: 4.01
vs AWK: 5.30
American Water Works Co (NYSE:AWK) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
American Water Works Co Debt-to-EBITDA Related Terms
American Water Works Co Debt-to-EBITDA Historical Data
* 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, American Water Works Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.
American Water Works Co Debt-to-EBITDA vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where American Water Works Co's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
American Water Works Co (AWK) has a Debt-to-EBITDA of 5.96 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on American Water Works Co. This is 13% above median its historical median of 5.28. Over the past decade, American Water Works Co's Debt-to-EBITDA has ranged from 4.13 to 5.96. According to the industry distribution chart, American Water Works Co ranks #296 out of 449 companies in the Utilities - Regulated industry, placing it in the top 65.9%.
Is American Water Works Co's Debt-to-EBITDA too high?
American Water Works Co's current Debt-to-EBITDA of 5.96 is 13% above median its 10-year median of 5.28. Over the past 10 years, this metric has ranged from a low of 4.13 to a high of 5.96. The Utilities - Regulated industry median Debt-to-EBITDA is 4.01. American Water Works Co's value of 5.96 is 48.6% above this industry median. Based on the distribution chart, American Water Works Co ranks #296 out of 449 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, American Water Works Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's Debt-to-EBITDA compare to WTRG and AWR?
According to the Utilities - Regulated industry distribution chart, American Water Works Co ranks #296 out of 449 companies for Debt-to-EBITDA. This places American Water Works Co in the lower half of its industry. The industry median Debt-to-EBITDA is 4.01. American Water Works Co's value of 5.96 is 48.6% above this benchmark. Historically, American Water Works Co's own Debt-to-EBITDA has ranged from 4.13 to 5.96 over the past decade. While the company's 10-year median is 5.28 vs. the industry median of 4.01, American Water Works Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Utilities - Regulated company?
The median Debt-to-EBITDA among Utilities - Regulated companies is 4.01, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Water Works Co's current Debt-to-EBITDA of 5.96 is 48.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on American Water Works Co. For the Utilities - Regulated industry, the median Debt-to-EBITDA is 4.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Water Works Co's current Debt-to-EBITDA is 5.96, which is 13% above median its own 10-year median of 5.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Water Works Co stock overvalued right now?
Based on GuruFocus' analysis, American Water Works Co (AWK) is currently considered Modestly Undervalued. The stock's GF Value™ is $155.45, compared to a current price of $133.83 — trading 13.9% below its estimated fair value. The current Debt-to-EBITDA is 5.96, which is 13% above median its 10-year median of 5.28 and 48.6% above the Utilities - Regulated industry median of 4.01. American Water Works Co's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For American Water Works Co (AWK), the current Debt-to-EBITDA is 5.96 as of Mar. 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 American Water Works Co (AWK) Overvalued in 2026?
Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued.
The current stock price of $133.83 is trading 13.9% below its estimated GF Value™ of $155.45.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for AWK:
Debt-to-EBITDA: 5.96 (13% above median its 10-year median of 5.28)
GF Value™: $155.45 vs. price of $133.83 (13.9% below fair value)
Industry Position: 48.6% above the Utilities - Regulated median (#296 of 449)
No single metric tells the full story. See the AWK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Water Works is the largest investor-owned US water and wastewater utility, serving nearly 4 million customers in 14 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns. The proposed Essential Utilities acquisition would add regulated water and wastewater utilities in Ohio, North Carolina, and Texas while increasing its presence in Illinois, Indiana, Pennsylvania, New Jersey, and Virginia.
78GF Score
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