The Discounted Cash Flow (DCF) valuation of American Water Works Company Inc (AWK) is 133.39 USD. With the latest stock price at 140.05 USD, the upside of American Water Works Company Inc based on DCF is -4.8%.
Based on the latest price of 140.05 USD and our DCF valuation, American Water Works Company Inc (AWK) is a sell. Selling AWK stocks now will result in a potential gain of 4.8%.
Range | Selected | |
WACC / Discount Rate | 4.8% - 6.2% | 5.5% |
Long-term Growth Rate | 1.0% - 3.0% | 2.0% |
Fair Price | 70.94 - 310.9 | 133.39 |
Upside | -49.3% - 122.0% | -4.8% |
(USD in millions) | Projections | |||||
12-2024 | 12-2025 | 12-2026 | 12-2027 | 12-2028 | 12-2029 | |
Revenue | 4,684 | 4,999 | 5,184 | 5,460 | 5,827 | 6,122 |
% Growth | 11% | 7% | 4% | 5% | 7% | 5% |
Cost of goods sold | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Selling, G&A expenses | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Net interest & other expenses | (3,325) | (3,548) | (3,680) | (3,876) | (4,136) | (4,346) |
% of Revenue | 71% | 71% | 71% | 71% | 71% | 71% |
Tax expense | (308) | (329) | (341) | (359) | (383) | (403) |
Tax rate | 23% | 23% | 23% | 23% | 23% | 23% |
Net profit | 1,051 | 1,122 | 1,163 | 1,225 | 1,307 | 1,374 |
% Margin | 22% | 22% | 22% | 22% | 22% | 22% |