WTRG - Essential Utilities, Inc.
Price:
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CONSENSUS:
Buy
DETAILS
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PRICE TARGET:
$40.33
DETAILS
HIGH:
$42.00
LOW:
$38.00
MEDIAN:
$41.00
CONSENSUS:
$40.33
UPSIDE:
7.72%
AlphaVal
Deterministic, archetype-aware fair value
Stable Earnings Power
85% confidence
Primary model: P/Adj-EPS × Normalized Multiple
Adjust Assumptions
19.0x
2.2$
Key Value Driver
Normalized P/E multiple (19x base case)
Implied Market Multiple
17.0x
Plain-Language Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $40.33 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $41.45 per share.
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