Essential Utilities Inc (WTRG) Fair Value & Analysis
Utilities · US · Market cap $10.9B · ISIN US29670G1022
What is Essential Utilities Inc really worth?
Below-average quality, and trading another 91% above our fair value of $21.81.
Strengths
Risks
For context
Fair value as of: Aug 30, 2026
From 15 valuation models · updated 6 days ago
Share price +7.1% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($30.34). The favourable scenario is already priced in.
- Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
- A fairly wide model range ($16.36 to $30.34) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.
How to read this chart
60‑month range $29.61 – $46.66 · fair‑value band $16.36 – $30.34 · the $41.55 price screens above the $21.81 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.
Analysis
Essential Utilities Inc (WTRG) currently trades at $41.55, while our model-based Fair Value estimate is $21.81, implying the stock looks roughly 90.5% overvalued today. The Quality Score stands at 41/100 (below-average quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of $32.49 per share, and 1 of the 15 models we run sit above the $41.55 price. Bear case: the Economic Profit group reads lowest at $4.00, and 14 of the 15 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Essential Utilities Inc generated revenue of $2.6B at a net margin of 21.8%. Revenue grew 10.0% year over year. It earns a return on equity of 8.3%. Net debt stands at $8.3B. Fundamentals as of Aug 30, 2026
Our scenario range runs from $16.36 (bear case) to $30.34 (bull case); at $41.55, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 19% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at 12% fair-value upside, at −48%, WTRG screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.4124 per share, which is 1.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 15 models by family
Widest divergence: Growth Earnings ($32.49) versus Economic Profit ($4.00). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 38 · Market factors (momentum, volatility) 66
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, and natural gas services in the United States. The company operates through Regulated Water; and Regulated Natural Gas segments.
Full company description
Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, and natural gas services in the United States. The company operates through Regulated Water; and Regulated Natural Gas segments. It also provides utility service line protection solutions and repair services to households; gas marketing and production activities; and natural gas distribution services. The company serves approximately 5.5 million residential water, commercial water, fire protection, industrial water, wastewater, and other water and utility customers in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, and Kentucky under the Aqua and Peoples brands. The company was formerly known as Aqua America, Inc. and changed its name to Essential Utilities, Inc. in February 2020. Essential Utilities, Inc. was founded in 1886 and is headquartered in Bryn Mawr, Pennsylvania.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Essential Utilities Inc reported revenue of $2.5B in FY2025 versus $1.9B in FY2021, a compound +7.1%/yr. Reported net income was $616M in FY2025, compounding +9.3%/yr from FY2021.
WTRG screens 91% overvalued. Compare with American Water Works Company →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Will Customer Growth Support Essential Utilities ' Long-Term Earnings?
- American Water and Essential Utilities Announce Expiration of Hart-Scott-Rodino Waiting Period for Proposed Merger
- Essential Utilities (WTRG) Q2 2026 Earnings Call Transcript
- Before You Dig a Hole, Make 811 Your Goal: Essential Utilities Recognizes 811 Day and the Importance of Safe Digging
Peer Group
Utilities - Regulated Water · 64 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| American Water Works Company AWK | $138.30 | $65.80 | −52% |
| SBS SBS | $4.82 | $8.13 | +69% |
| Guangdong Investment Limited 0270 | HK$8.15 | HK$12.82 | +57% |
| Grandblue Environment Co 600323 | ¥29.61 | ¥33.29 | +12% |
| American States Water Company AWR | $89.88 | $47.94 | −47% |
| Chengdu Xingrong Environment Co 000598 | ¥7.35 | ¥9.09 | +24% |
| California Water Service Group CWT | $50.48 | $33.56 | −34% |
| Chongqing Water Group 601158 | ¥4.14 | ¥2.77 | −33% |
| Beijing Enterprises Water Group 0371 | HK$1.74 | HK$3.00 | +73% |
| H2O America, through its subsidiaries, HTO | $62.57 | $25.29 | −60% |
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