American Water Works Co PEG
What is the PEG of American Water Works Co?
The PEG of American Water Works Co. Inc. is 4.41
What is the definition of PEG?
Price/earnings to growth (PEG) ratio is a stock’s P/E ratio divided by a predicted growth rate of its earnings for a time period of 5 years.
= forward PE / 5-year EPS growth rate
The PEG ratio is calculated by dividing the P/E ratio by the company's expected earnings growth rate in the next 5 years. Since using just the P/E ratio would make high-growth companies appear overvalued relative to others, the PEG ratio is considered to be a convenient approximation. PEG is a widely employed indicator of a stock's possible true value.
Similar to P/E ratios, a lower PEG means that the stock is undervalued more. It is favored by many over the price/earnings ratio because it also accounts for growth. The PEG ratio of 1 is sometimes said to represent a fair trade-off between the values of cost and the values of growth, indicating that a stock is reasonably valued given the expected growth. A crude analysis suggests that companies with PEG values between 0 and 1 may provide higher returns. A PEG Ratio can also be a negative number if a stock's present income figure is negative, (negative earnings) or if future earnings are expected to drop (negative growth). PEG ratios calculated from negative present earnings are viewed with skepticism as almost meaningless, other than as an indication of high investment risk.
PEG of companies in the Utilities sector on NYSE compared to American Water Works Co
What does American Water Works Co do?
founded in 1886, american water is the largest publicly traded u.s. water and wastewater utility company. with headquarters in voorhees, n.j., the company employs more than 6,800 dedicated professionals who provide drinking water, wastewater and other related services to approximately 14 million people in more than 40 states as well as parts of canada. more information can be found at www.amwater.com.
Companies with peg similar to American Water Works Co
- Armada Hoffler Properties Inc has PEG of 4.39
- Cboe Global Markets has PEG of 4.39
- Cboe Global Markets has PEG of 4.39
- Volkswagen AG has PEG of 4.39
- Enel Americas SA has PEG of 4.40
- ATOSS Software AG has PEG of 4.40
- American Water Works Co has PEG of 4.41
- innogy SE has PEG of 4.42
- Volkswagen AG has PEG of 4.42
- Vestas Wind Systems A/S has PEG of 4.42
- Sterlite Technologies has PEG of 4.42
- Knight-Swift Transportation Inc has PEG of 4.43
- International Flavors & Fragrances has PEG of 4.43