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American Water Works Co. Inc.

American Water Works Inc. PEG Ratio

Valuation check: AWK's PEG ratio is 258.02, above the Utilities sector average of 25.44.

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PEG Ratio

258.02

PEG Ratio

258.02

The PEG ratio measures a stock's valuation relative to its earnings growth rate. A PEG ratio below 1.0 may indicate that the stock is undervalued relative to its growth potential.

Average PEG Ratio (Comparison Companies)

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PEG Ratio History

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PEG Ratio Comparison

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American Water Works Inc. (AWK) FAQ

American Water Works Inc. posts a PEG ratio of 258.02. That is above the Utilities sector average of 25.44. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.

For Utilities stocks, a PEG ratio near 25.44 is typical. American Water Works Inc.'s 258.02 is higher that level. That is roughly 914.3% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.

American Water Works Inc.'s PEG ratio of 258.02 comes from dividing a price-based measure by a related financial statistic. Changes can come from the stock price moving, the underlying fundamental shifting, or both. Track both the level and the trend — a rising multiple on falling fundamentals is a different story than a rising multiple on rising earnings.

Context for AWK's PEG ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 25.44), and (3) consistency with growth and profitability. This page covers the first two; American Water Works Inc.'s other metric pages and overview cover the third.

Judging American Water Works Inc. against Utilities peers is usually better than using a market-wide rule of thumb. Business models inside Utilities are more comparable, which makes gaps in PEG ratio easier to interpret. Start with 258.02 here, then scan peer and history charts to see if the gap is persistent.