AWK
American Water Works Company Inc
Price:  
140.05 
USD
Volume:  
683,752
United States | Water Utilities

AWK DCF Valuation - Growth Exit 5Y

-4.8 %
Upside

What is the DCF valuation of AWK?

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%.

Is AWK a buy or a sell?

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 Rate4.8% - 6.2%5.5%
Long-term Growth Rate 1.0% - 3.0%2.0%
Fair Price70.94 - 310.9133.39
Upside-49.3% - 122.0%-4.8%
140.05 USD
Stock Price
133.39 USD
Fair Price
REVENUE & EXPENSES
CAPEX
D&A
WORKING CAPITAL
TERMINAL VALUE

AWK DCF Valuation: Revenue & Expenses Forecast

(USD in millions)Projections
12-202412-202512-202612-202712-202812-2029
Revenue4,6844,9995,1845,4605,8276,122
% Growth
11%7%4%5%7%5%
Cost of goods sold000000
% of Revenue0%0%0%0%0%0%
Selling, G&A expenses000000
% of Revenue0%0%0%0%0%0%
Research & Development000000
% of Revenue0%0%0%0%0%0%
Net interest & other expenses(3,325)(3,548)(3,680)(3,876)(4,136)(4,346)
% of Revenue71%71%71%71%71%71%
Tax expense(308)(329)(341)(359)(383)(403)
Tax rate23%23%23%23%23%23%
Net profit1,0511,1221,1631,2251,3071,374
% Margin22%22%22%22%22%22%