YORW
The York Water Company
$29.87
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 34.3% above fair value
You pay
$29.87
Bear
$19.46
Fair
$22.24
Bull
$25.02
Bear
$19.46
-34.9%
$1.39 × 14x P/E
Fair
$22.24
-25.5%
$1.39 × 16x P/E
Bull
$25.02
-16.2%
$1.39 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
21.5x
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