H2O America (HTO) is overvalued and Essential Utilities Inc (WTRG) is slightly overvalued.
Both trade above our estimate of their intrinsic value. WTRG is the closer of the two: -12%, against -42% for HTO.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.7% (average of 3 methods) values the shares at $44.37; the price of $62.92 is 42% above that value, and 84% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
Discounting its cash flows at 7.2% (average of 3 methods) values the shares at $36.18; the price of $40.38 is 12% above that value, and 83% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
| Metric | HTO | WTRG |
|---|---|---|
| Verdict | Overvalued | Slightly overvalued |
| Price | $62.92 | $40.38 |
| Intrinsic value | $44.37 | $36.18 |
| Margin of safety | -42% | -12% |
| Leak Score | 14/100 (3/12) | 14/100 (3/12) |
| Market cap | $2.6B | $11.5B |
| Revenue growth, 5 years | 7.2% | 11.1% |
| Operating margin | 21.5% | 35.1% |
| Net margin | 12.9% | 21.6% |
| Return on equity | 6.5% | 8.1% |
| Debt to equity | 1.03 | 1.21 |
| P/E | 22.2x | 20.6x |
| Forward P/E | 22.3x | 17.2x |
| P/B | 1.4x | 1.6x |
| Dividend yield | 2.8% | 3.5% |