American Water Works CoAWK +3.85%78 PB Ratio is 2.42 as of Jul. 05, 2026, which is 14% below its 10-year median of 2.83. GuruFocus rates AWK with a GF Score™ of 78/100 and a GF Value™ of $155.70 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 502 Utilities - Regulated companies, American Water Works Co ranks worse than 79.08% on this metric.
American Water Works Co Inc stock PB Ratio (=2.42) is close to 10-year low of 2.18.
The historical rank and industry rank for American Water Works Co's PB Ratio or its related term are showing as below:
AWK'
s PB Ratio Range Over the Past 10 Years
Min: 2.18 Med: 2.83 Max: 5.02
Current: 2.42
During the past 13 years, American Water Works Co's highest PB Ratio was 5.02. The lowest was 2.18. And the median was 2.83.
AWK's PB Ratio is ranked worse than 79.08% of 502
companies
in the Utilities - Regulated industry
Industry Median: 1.435
vs AWK: 2.42
During the past 12 months, American Water Works Co's average Book Value Per Share Growth Rate was 4.60% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 9.50% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 9.70% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 7.50% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of American Water Works Co was 902.90% per year. The lowest was -89.00% per year. And the median was 6.40% per year.
Back to Basics: PB Ratio
American Water Works Co (NYSE:AWK) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
* 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 PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's PB Ratio distribution charts can be found below:
* The bar in red indicates where American Water Works Co's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
American Water Works Co (AWK) has a PB Ratio of 2.42 as of Jul. 05, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on American Water Works Co and its competitors. This is 14% below median its historical median of 2.83. Over the past decade, American Water Works Co's PB Ratio has ranged from 2.18 to 5.02. According to the industry distribution chart, American Water Works Co ranks #397 out of 502 companies in the Utilities - Regulated industry, placing it in the top 79.1%.
Is American Water Works Co's PB Ratio too high?
American Water Works Co's current PB Ratio of 2.42 is 14% below median its 10-year median of 2.83. Over the past 10 years, this metric has ranged from a low of 2.18 to a high of 5.02. The Utilities - Regulated industry median PB Ratio is 1.44. American Water Works Co's value of 2.42 is 68.6% above this industry median. Based on the distribution chart, American Water Works Co ranks #397 out of 502 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. 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 PB Ratio compare to WTRG and AWR?
According to the Utilities - Regulated industry distribution chart, American Water Works Co ranks #397 out of 502 companies for PB Ratio. This places American Water Works Co in the lower half of its industry. The industry median PB Ratio is 1.44. American Water Works Co's value of 2.42 is 68.6% above this benchmark. Historically, American Water Works Co's own PB Ratio has ranged from 2.18 to 5.02 over the past decade. While the company's 10-year median is 2.83 vs. the industry median of 1.44, 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 PB Ratio for an Utilities - Regulated company?
The median PB Ratio among Utilities - Regulated companies is 1.44, based on 502 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Water Works Co's current PB Ratio of 2.42 is 68.6% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on American Water Works Co and its competitors. For the Utilities - Regulated industry, the median PB Ratio is 1.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Water Works Co's current PB Ratio is 2.42, which is 14% below median its own 10-year median of 2.83. 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 $155.70, compared to a current price of $136.86 — trading 12.1% below its estimated fair value. The current PB Ratio is 2.42, which is 14% below median its 10-year median of 2.83 and 68.6% above the Utilities - Regulated industry median of 1.44. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For American Water Works Co (AWK), the current PB Ratio is 2.42 as of Jul. 05, 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 $136.86 is trading 12.1% below its estimated GF Value™ of $155.70.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for AWK:
PB Ratio: 2.42 (14% below median its 10-year median of 2.83)
GF Value™: $155.70 vs. price of $136.86 (12.1% below fair value)
Industry Position: 68.6% above the Utilities - Regulated median (#397 of 502)
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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