American Water Works CoXTER:AWC 83 PS Ratio is 4.98 as of Jul. 08, 2026, which is 16% below its 10-year median of 5.91. GuruFocus rates XTER:AWC with a GF Score™ of 83/100 and a GF Value™ of €133.65 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 501 Utilities - Regulated companies, American Water Works Co ranks worse than 90.82% on this metric.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, American Water Works Co's share price is €114.20.
American Water Works Co's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 was €22.93. Hence, American Water Works Co's PS Ratio for today is 4.98.
Good Sign:
American Water Works Co Inc stock PS Ratio (=4.99) is close to 5-year low of 4.62.
The historical rank and industry rank for American Water Works Co's PS Ratio or its related term are showing as below:
XTER:AWC'
s PS Ratio Range Over the Past 10 Years
Min: 3.83 Med: 5.91 Max: 8.75
Current: 4.99
During the past 13 years, American Water Works Co's highest PS Ratio was 8.75. The lowest was 3.83. And the median was 5.91.
XTER:AWC's PS Ratio is ranked worse than 90.82% of 501
companies
in the Utilities - Regulated industry
Industry Median: 1.42
vs XTER:AWC: 4.99
American Water Works Co Inc has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of American Water Works Co was 8.10% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 8.20% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 4.60% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 3.50% per year.
During the past 13 years, American Water Works Co's highest 3-Year average Revenue per Share Growth Rate was 899.30% per year. The lowest was -89.50% per year. And the median was 3.50% per year.
Back to Basics: PS Ratio
American Water Works Co (XTER:AWC) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
* 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 PS Ratio, along with its competitors' market caps and PS 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 PS Ratio vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's PS Ratio distribution charts can be found below:
* The bar in red indicates where American Water Works Co's PS Ratio falls into.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
American Water Works Co's Share Price of today is €114.20. American Water Works Co's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €22.93.
* 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:
American Water Works Co (XTER:AWC) has a PS Ratio of 4.98 as of Jul. 08, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on American Water Works Co and its competitors. This is 16% below median its historical median of 5.91. Over the past decade, American Water Works Co's PS Ratio has ranged from 3.83 to 8.75. According to the industry distribution chart, American Water Works Co ranks #455 out of 501 companies in the Utilities - Regulated industry, placing it in the top 90.8%.
Is American Water Works Co's PS Ratio too high?
American Water Works Co's current PS Ratio of 4.98 is 16% below median its 10-year median of 5.91. Over the past 10 years, this metric has ranged from a low of 3.83 to a high of 8.75. The Utilities - Regulated industry median PS Ratio is 1.42. American Water Works Co's value of 4.98 is 250.7% above this industry median. Based on the distribution chart, American Water Works Co ranks #455 out of 501 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 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's PS Ratio compare to WTRG and AWR?
According to the Utilities - Regulated industry distribution chart, American Water Works Co ranks #455 out of 501 companies for PS Ratio. This places American Water Works Co in the lower half of its industry. The industry median PS Ratio is 1.42. American Water Works Co's value of 4.98 is 250.7% above this benchmark. Historically, American Water Works Co's own PS Ratio has ranged from 3.83 to 8.75 over the past decade. While the company's 10-year median is 5.91 vs. the industry median of 1.42, 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 PS Ratio for an Utilities - Regulated company?
The median PS Ratio among Utilities - Regulated companies is 1.42, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Water Works Co's current PS Ratio of 4.98 is 250.7% 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 PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on American Water Works Co and its competitors. For the Utilities - Regulated industry, the median PS Ratio is 1.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Water Works Co's current PS Ratio is 4.98, which is 16% below median its own 10-year median of 5.91. 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 (XTER:AWC) is currently considered Modestly Undervalued. The stock's GF Value™ is €133.65, compared to a current price of €114.20 — trading 14.6% below its estimated fair value. The current PS Ratio is 4.98, which is 16% below median its 10-year median of 5.91 and 250.7% above the Utilities - Regulated industry median of 1.42. American Water Works Co's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For American Water Works Co (XTER:AWC), the current PS Ratio is 4.98 as of Jul. 08, 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 (XTER:AWC) Overvalued in 2026?
Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued.
The current stock price of €114.20 is trading 14.6% below its estimated GF Value™ of €133.65.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for XTER:AWC:
PS Ratio: 4.98 (16% below median its 10-year median of 5.91)
GF Value™: €133.65 vs. price of €114.20 (14.6% below fair value)
Industry Position: 250.7% above the Utilities - Regulated median (#455 of 501)
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 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.
83GF Score
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