American Water Works Co (XTER:AWC) Debt-to-EBITDA : (As of Jun. 2026)

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XTER:AWC American Water Works Co Inc XTER:AWC
76 GF Score
Price €118.90
GF Value €133.86
Valuation Modestly Undervalued
! 3 Warning Signs
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What is American Water Works Co Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

American Water Works Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €1,701 Mil. American Water Works Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €12,347 Mil. American Water Works Co's annualized EBITDA for the quarter that ended in Jun. 2026 was €2,793 Mil. American Water Works Co's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 was 5.03.

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:

XTER:AWC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 4.13   Med: 5.28   Max: 5.96
Current: 5.31

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.

XTER:AWC's Debt-to-EBITDA is ranked worse than
65.71% of 452 companies
in the Utilities - Regulated industry
Industry Median: 4.065 vs XTER:AWC: 5.31

American Water Works Co  (XTER:AWC) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

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

* Premium members only.

The historical data trend for American Water Works Co's Debt-to-EBITDA can be seen below:

* 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.

American Water Works Co Debt-to-EBITDA Chart

American Water Works Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
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American Water Works Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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XTER:AWC vs WTRG, AWR, CWT: Debt-to-EBITDA Comparison

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.


XTER:AWC
76GF Score
American Water Works Co Inc XTER:AWC
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

American Water Works Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

American Water Works Co's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2611.4351398527 + 10944.697517987) / 2597.0735990947
=5.22

American Water Works Co's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1701.2157788857 + 12346.715647687) / 2793.4746541215
=5.03

* 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 (Jun. 2026) EBITDA data.

Is American Water Works Co (XTER:AWC) Overvalued in 2026?

Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued. The current stock price of €118.90 is trading 11.2% below its estimated GF Value™ of €133.86. GuruFocus considers American Water Works Co to be Modestly Undervalued.

Key valuation signals for XTER:AWC:

  • Debt-to-EBITDA:
  • GF Value™: €133.86 vs. price of €118.90 (11.2% below fair value)
  • GF Score™: 76/100 with 3 warning signs

No single metric tells the full story. See the XTER:AWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


American Water Works Co Business Description

Address 1 Water Street, Camden, NJ, USA, 08102-1658
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.
76GF Score

Get the complete analysis for XTER:AWC

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€118.90
Price
€133.86
GF Value