Essential Utilities, Inc. logo WTRG - Essential Utilities, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 10
HOLD 7
SELL 1
STRONG
SELL
0
| PRICE TARGET: $43.00 DETAILS
HIGH: $46.00
LOW: $40.00
MEDIAN: $43.00
CONSENSUS: $43.00
UPSIDE: 8.56%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 85% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Mild
Trading 6.0% below fair value
Current Price $39.61
Bear Case $36.86 7.0% downside ($36.86 - $39.61) / $39.61 = -7.0% $2.20 × 17x P/E
Fair Value $42.12 6.3% upside ($42.12 - $39.61) / $39.61 = 6.3% $2.20 × 19x P/E
Bull Case $47.39 19.6% upside ($47.39 - $39.61) / $39.61 = 19.6% $2.20 × 21x P/E

Adjust Assumptions

19.0x
2.2$

Key Value Driver

Normalized P/E multiple (19x base case)

Implied Market Multiple 18.0x

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 $43.00 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $42.12 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