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Essential Utilities Inc (WTRG) Fair Value & Analysis

Utilities · US · Market cap $10.9B · ISIN US29670G1022

What is Essential Utilities Inc really worth?

EU Essential Utilities Inc logo Essential Utilities Inc WTRG · US
Price$41.55
Fair Value$21.81
Upside−47.5%
Quality41/100

Below-average quality, and trading another 91% above our fair value of $21.81.

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Strengths

Highly profitable · 21.8% net margin
Wide moat 65/100

Risks

!Expensive Growth (revenue 5y +11.1 %/yr)
!Moderate debt · negative free cash flow
!Mixed vs. peers (7/14)

For context

·3.26% dividend yield
Evidence: High Range $16.36 – $30.34

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)

$46.66 $29.61 Fair Value $21.81 Jun 2021 Sep 2026

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.

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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.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence $20.81 $22.71 $29.40 76
EPV $4.00 $8.06 68
ROIC Compounder $4.00 $8.06 68
All 15 models by family
Earnings-Based
Graham-Dodd $14.78 $56.18 $76.07 64
Lynch FV $13.65 $19.49 $25.34 61
PEG = 1.0 $13.65 $19.49 $25.34 57
EPV $4.00 $8.06 68
Dividend Discount
Gordon GGM $12.10 $25.16 $39.92 66
DDM Multi-Stage $12.10 $21.22 $26.41 66
Multiples
P/E Multiple $29.34 $39.12 $48.90 63
P/S Multiple $16.36 $21.81 $27.26 58
P/B Multiple $27.71 $36.94 $46.18 55
EV/EBIT $8.06 $20.23 $32.41 61
EV/EBITDA $6.92 $18.72 $30.51 62
Asset-Based
NCAV (Graham) $12.09 $16.20 $24.18 54
Economic Profit
Residual Income best evidence $20.81 $22.71 $29.40 76
ROIC Compounder $4.00 $8.06 68
Growth Earnings
Growth-Adj P/E $22.74 $32.49 $42.23 67

Widest divergence: Growth Earnings ($32.49) versus Economic Profit ($4.00). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 21.2
P/S ratio 5.28 P/E × margin
EPS (TTM) $1.96 price ÷ EPS = P/E 21.2
Dividend yield 3.3% payout 69.0%
Net margin 24.9% FY2025
Return on equity 8.3% TTM
More key figures
Profitability
Return on assets (EBIT) 4.3% avg 5y
Operating margin 36.1% TTM
Growth
Revenue (TTM) $2.6B TTM
Revenue growth (YoY) +10.0% 3y avg +2.6%
EPS growth (YoY) −23.3%
Balance sheet & cash flow
Free cash flow −$420M FY2025
Net debt $8.3B FY2025

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 38 · Market factors (momentum, volatility) 66

Profitability 37
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 21
Balance sheet, leverage, solvency risk
Investment 39
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 59
Buybacks instead of dilution

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.

Growth Quality 50/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$2.5B
Latest YoY
+18.6%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.1%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+18.3% (15.0 + 3.3)
Revenue +7.1%/yr
FY21 $1.9B
FY22 $2.3B
FY23 $2.1B
FY24 $2.1B
FY25 $2.5B
Net income +9.3%/yr
FY21 $432M
FY22 $465M
FY23 $498M
FY24 $595M
FY25 $616M

WTRG screens 91% overvalued. Compare with American Water Works Company →

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Cite: Fair Value Calculator (2026). "Essential Utilities Inc Fair Value". https://www.fairvalue-calculator.com/stock/WTRG

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

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.

Quality Score 41 · Below median
Fair Value upside −48% · Below median
Return on equity (TTM) 8% · Above median
Return on assets 3% · Above median
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 36% · Top 25%
Revenue growth 10% · Above median
Dividend yield (TTM) 3.3% · Above median
Debt / equity 1.18× · Higher than 75% of peers

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 21.2× · Pricier than median
P/B 1.60× · Pricier than median
P/S (TTM) 4.29× · Pricier than 75% of peers
EV/EBITDA 14.4× · Pricier than median
PEG 3.67× · Pricier than 75% of peers

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE50 · sector 28
PAST33 · sector 31
HEALTH41 · sector 65
DIVIDEND65 · sector 52

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.

None of the checked exposures detected

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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Frequently asked questions

Is Essential Utilities Inc (WTRG) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of $21.81 versus a price of $41.55, about −48% upside (overvalued).
What is the fair value of WTRG?
Our model-based fair value for Essential Utilities Inc is $21.81 (as of Aug 30, 2026), built from audited fundamentals. The current price: $41.55.
What is the quality score of WTRG?
Essential Utilities Inc has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Essential Utilities Inc (WTRG)?
Essential Utilities Inc reported trailing-twelve-month revenue of about $2.6B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of WTRG?
The net profit margin of Essential Utilities Inc is about 21.8%, meaning it keeps roughly 21.8% of revenue as net income. Based on the latest reported figures.
Does Essential Utilities Inc pay a dividend?
Essential Utilities Inc currently shows a dividend yield of about 3.26% relative to its recent price (as of Aug 30, 2026).
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