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Essential UtilitiesWTRG +0.17%76 EV-to-EBIT is 21.77 as of Sep. 01, 2026, which is 14% below its 10-year median of 25.22. GuruFocus rates WTRG with a GF Score™ of 76/100 and a GF Value™ of $41.89 (Fairly Valued). The stock has 8 warning signs investors should review. Among 464 Utilities - Regulated companies, Essential Utilities ranks worse than 79.96% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Essential Utilities's Enterprise Value for the quarter that ended in Jun. 2026 was $19,386 Mil.
Essential Utilities's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $928 Mil.
* 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.
Essential Utilities EV-to-EBIT Related Terms
Essential Utilities EV-to-EBIT Historical Data
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The historical data trend for Essential Utilities's EV-to-EBIT 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.
For the Utilities - Regulated Water subindustry, Essential Utilities's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Essential Utilities's EV-to-EBIT falls into.
Essential Utilities's current Enterprise Value is $20,198 Mil.
Essential Utilities's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $928 Mil.
* 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.
Essential Utilities (WTRG) has a EV-to-EBIT of 21.77 as of Sep. 01, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Essential Utilities and its competitors. This is 14% below median its historical median of 25.22. Over the past decade, Essential Utilities' EV-to-EBIT has ranged from 19.33 to 48.05. According to the industry distribution chart, Essential Utilities ranks #371 out of 464 companies in the Utilities - Regulated industry, placing it in the top 80%.
Is Essential Utilities' EV-to-EBIT too high?
Essential Utilities' current EV-to-EBIT of 21.77 is 14% below median its 10-year median of 25.22. Over the past 10 years, this metric has ranged from a low of 19.33 to a high of 48.05. The Utilities - Regulated industry median EV-to-EBIT is 13.39. Essential Utilities' value of 21.77 is 62.6% above this industry median. Based on the distribution chart, Essential Utilities ranks #371 out of 464 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Essential Utilities has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' EV-to-EBIT compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #371 out of 464 companies for EV-to-EBIT. This places Essential Utilities in the lower half of its industry. The industry median EV-to-EBIT is 13.39. Essential Utilities' value of 21.77 is 62.6% above this benchmark. Historically, Essential Utilities' own EV-to-EBIT has ranged from 19.33 to 48.05 over the past decade. While the company's 10-year median is 25.22 vs. the industry median of 13.39, Essential Utilities 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 EV-to-EBIT for an Utilities - Regulated company?
The median EV-to-EBIT among Utilities - Regulated companies is 13.39, based on 464 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essential Utilities's current EV-to-EBIT of 21.77 is 62.6% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Essential Utilities and its competitors. For the Utilities - Regulated industry, the median EV-to-EBIT is 13.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current EV-to-EBIT is 21.77, which is 14% below median its own 10-year median of 25.22. 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 (WTRG) is currently considered Fairly Valued. The stock's GF Value™ is $41.89, compared to a current price of $41.17 — trading 1.7% below its estimated fair value. The current EV-to-EBIT is 21.77, which is 14% below median its 10-year median of 25.22 and 62.6% above the Utilities - Regulated industry median of 13.39. Essential Utilities' overall GF Score™ is 76/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Essential Utilities (WTRG), the current EV-to-EBIT is 21.77 as of Sep. 01, 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 (WTRG) Overvalued in 2026?
Based on GuruFocus' analysis, Essential Utilities stock appears to be undervalued.
The current stock price of $41.17 is trading 1.7% below its estimated GF Value™ of $41.89.
GuruFocus considers Essential Utilities to be Fairly Valued.
Key valuation signals for WTRG:
EV-to-EBIT: 21.77 (14% below median its 10-year median of 25.22)
GF Value™: $41.89 vs. price of $41.17 (1.7% below fair value)
Industry Position: 62.6% above the Utilities - Regulated median (#371 of 464)
No single metric tells the full story. See the WTRG 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.
76GF Score
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