Middlesex Water Co (MSEX) is slightly 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 -12% for MSEX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.3% (average of 3 methods) values the shares at $48.83; the price of $54.92 is 12% above that value, and 78% of that value comes from beyond year five.
Leak Score 41/100 on 8 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 | MSEX | WTRG |
|---|---|---|
| Verdict | Slightly overvalued | Slightly overvalued |
| Price | $54.92 | $40.38 |
| Intrinsic value | $48.83 | $36.18 |
| Margin of safety | -12% | -12% |
| Leak Score | 41/100 (8/12) | 14/100 (3/12) |
| Market cap | $1.0B | $11.5B |
| Revenue growth, 5 years | 6.6% | 11.1% |
| Operating margin | 29.2% | 35.1% |
| Net margin | 23.2% | 21.6% |
| Return on equity | 9.8% | 8.1% |
| Debt to equity | 0.84 | 1.21 |
| P/E | 21.2x | 20.6x |
| Forward P/E | 19.8x | 17.2x |
| P/B | 2.0x | 1.6x |
| Dividend yield | 2.6% | 3.5% |