YORW
The York Water Company
$30.60
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 37.6% above fair value
You pay
$30.60
Bear
$19.46
Fair
$22.24
Bull
$25.02
Bear
$19.46
-36.4%
$1.39 × 14x P/E
Fair
$22.24
-27.3%
$1.39 × 16x P/E
Bull
$25.02
-18.2%
$1.39 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
22.0x
Summary
Applying a 16x P/E to adjusted EPS of $1.39, the base-case value is $22.24 per share. DDM cross-check: $19.37.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples