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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-28), American Water Works Co's 1-Year Sharpe Ratio is -0.60.
American Water Works Co (NYSE:AWK) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
American Water Works Co 1-Year Sharpe Ratio Related Terms
AWK vs WTRG, AWR, CWT: 1-Year Sharpe Ratio Comparison
For the Utilities - Regulated Water subindustry, American Water Works Co's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where American Water Works Co's 1-Year Sharpe Ratio falls into.
American Water Works Co 1-Year Sharpe Ratio Calculation
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
American Water Works Co (AWK) has a 1-Year Sharpe Ratio of -0.60 as of Jul. 28, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for American Water Works Co and its competitors.
Is American Water Works Co's 1-Year Sharpe Ratio too high?
American Water Works Co's current 1-Year Sharpe Ratio is -0.60. 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 1-Year Sharpe Ratio compare to WTRG and AWR?
American Water Works Co's 1-Year Sharpe Ratio of -0.60 can be compared against companies in the Utilities - Regulated industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for an Utilities - Regulated company?
A good 1-Year Sharpe Ratio depends on the Utilities - Regulated industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for American Water Works Co and its competitors. American Water Works Co's current 1-Year Sharpe Ratio is -0.60. 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 $155.79, compared to a current price of $134.56 — trading 13.6% below its estimated fair value. The current 1-Year Sharpe Ratio is -0.60. 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 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For American Water Works Co (AWK), the current 1-Year Sharpe Ratio is -0.60 as of Jul. 28, 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 $134.56 is trading 13.6% below its estimated GF Value™ of $155.79.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for AWK:
1-Year Sharpe Ratio: -0.60
GF Value™: $155.79 vs. price of $134.56 (13.6% below fair value)
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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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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