Intrinsic value of American Water Works - AWK

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$81.13

  Intrinsic Value

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  Value-price divergence*

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$81.13

 
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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AWK stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 14.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.53
  2.40
  2.66
  2.89
  3.10
  3.29
  3.46
  3.62
  3.76
  3.88
  3.99
  4.09
  4.18
  4.27
  4.34
  4.41
  4.46
  4.52
  4.57
  4.61
  4.65
  4.68
  4.72
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
Revenue, $m
  3,302
  3,381
  3,471
  3,572
  3,683
  3,804
  3,936
  4,078
  4,231
  4,395
  4,571
  4,758
  4,957
  5,169
  5,393
  5,630
  5,882
  6,148
  6,428
  6,725
  7,037
  7,367
  7,714
  8,080
  8,466
  8,871
  9,298
  9,748
  10,220
  10,717
  11,240
Variable operating expenses, $m
 
  2,228
  2,284
  2,346
  2,415
  2,490
  2,572
  2,660
  2,755
  2,856
  2,965
  2,946
  3,070
  3,201
  3,340
  3,487
  3,642
  3,807
  3,981
  4,164
  4,358
  4,562
  4,777
  5,004
  5,242
  5,494
  5,758
  6,036
  6,329
  6,637
  6,961
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  2,222
  2,228
  2,284
  2,346
  2,415
  2,490
  2,572
  2,660
  2,755
  2,856
  2,965
  2,946
  3,070
  3,201
  3,340
  3,487
  3,642
  3,807
  3,981
  4,164
  4,358
  4,562
  4,777
  5,004
  5,242
  5,494
  5,758
  6,036
  6,329
  6,637
  6,961
Operating income, $m
  1,080
  1,153
  1,187
  1,225
  1,268
  1,314
  1,364
  1,418
  1,476
  1,539
  1,606
  1,812
  1,887
  1,968
  2,053
  2,144
  2,239
  2,341
  2,447
  2,560
  2,679
  2,805
  2,937
  3,076
  3,223
  3,378
  3,540
  3,711
  3,891
  4,080
  4,279
EBITDA, $m
  1,550
  1,703
  1,748
  1,799
  1,855
  1,916
  1,982
  2,054
  2,131
  2,214
  2,302
  2,396
  2,497
  2,603
  2,716
  2,836
  2,962
  3,096
  3,238
  3,387
  3,544
  3,710
  3,885
  4,070
  4,264
  4,468
  4,683
  4,909
  5,147
  5,398
  5,661
Interest expense (income), $m
  327
  341
  358
  375
  395
  416
  439
  465
  492
  522
  553
  587
  623
  661
  702
  745
  791
  839
  890
  944
  1,001
  1,061
  1,124
  1,191
  1,262
  1,336
  1,414
  1,496
  1,582
  1,673
  1,769
Earnings before tax, $m
  770
  812
  829
  850
  873
  898
  925
  953
  984
  1,017
  1,053
  1,225
  1,264
  1,307
  1,351
  1,399
  1,449
  1,502
  1,557
  1,616
  1,678
  1,744
  1,813
  1,885
  1,961
  2,042
  2,126
  2,215
  2,309
  2,407
  2,511
Tax expense, $m
  302
  219
  224
  229
  236
  242
  250
  257
  266
  275
  284
  331
  341
  353
  365
  378
  391
  405
  421
  436
  453
  471
  489
  509
  530
  551
  574
  598
  623
  650
  678
Net income, $m
  468
  593
  605
  620
  637
  655
  675
  696
  719
  743
  768
  894
  923
  954
  987
  1,021
  1,058
  1,096
  1,137
  1,180
  1,225
  1,273
  1,323
  1,376
  1,432
  1,491
  1,552
  1,617
  1,686
  1,757
  1,833

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  75
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  18,482
  18,890
  19,392
  19,953
  20,573
  21,250
  21,987
  22,782
  23,638
  24,555
  25,536
  26,581
  27,693
  28,875
  30,128
  31,455
  32,859
  34,344
  35,912
  37,567
  39,314
  41,155
  43,096
  45,140
  47,293
  49,560
  51,946
  54,456
  57,096
  59,873
  62,793
Adjusted assets (=assets-cash), $m
  18,407
  18,890
  19,392
  19,953
  20,573
  21,250
  21,987
  22,782
  23,638
  24,555
  25,536
  26,581
  27,693
  28,875
  30,128
  31,455
  32,859
  34,344
  35,912
  37,567
  39,314
  41,155
  43,096
  45,140
  47,293
  49,560
  51,946
  54,456
  57,096
  59,873
  62,793
Revenue / Adjusted assets
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
  0.179
Average production assets, $m
  8,362
  8,561
  8,789
  9,043
  9,324
  9,631
  9,965
  10,326
  10,713
  11,129
  11,574
  12,047
  12,551
  13,087
  13,655
  14,256
  14,893
  15,566
  16,276
  17,027
  17,818
  18,653
  19,532
  20,459
  21,435
  22,462
  23,543
  24,681
  25,878
  27,136
  28,460
Working capital, $m
  -1,608
  -267
  -274
  -282
  -291
  -301
  -311
  -322
  -334
  -347
  -361
  -376
  -392
  -408
  -426
  -445
  -465
  -486
  -508
  -531
  -556
  -582
  -609
  -638
  -669
  -701
  -735
  -770
  -807
  -847
  -888
Total debt, $m
  7,182
  7,462
  7,822
  8,225
  8,669
  9,155
  9,683
  10,253
  10,867
  11,524
  12,227
  12,977
  13,774
  14,621
  15,519
  16,471
  17,478
  18,542
  19,667
  20,854
  22,106
  23,426
  24,818
  26,284
  27,827
  29,453
  31,163
  32,963
  34,856
  36,847
  38,941
Total liabilities, $m
  13,264
  13,544
  13,904
  14,307
  14,751
  15,237
  15,765
  16,335
  16,949
  17,606
  18,309
  19,059
  19,856
  20,703
  21,601
  22,553
  23,560
  24,624
  25,749
  26,936
  28,188
  29,508
  30,900
  32,366
  33,909
  35,535
  37,245
  39,045
  40,938
  42,929
  45,023
Total equity, $m
  5,218
  5,346
  5,488
  5,647
  5,822
  6,014
  6,222
  6,447
  6,690
  6,949
  7,227
  7,522
  7,837
  8,172
  8,526
  8,902
  9,299
  9,719
  10,163
  10,632
  11,126
  11,647
  12,196
  12,775
  13,384
  14,025
  14,701
  15,411
  16,158
  16,944
  17,771
Total liabilities and equity, $m
  18,482
  18,890
  19,392
  19,954
  20,573
  21,251
  21,987
  22,782
  23,639
  24,555
  25,536
  26,581
  27,693
  28,875
  30,127
  31,455
  32,859
  34,343
  35,912
  37,568
  39,314
  41,155
  43,096
  45,141
  47,293
  49,560
  51,946
  54,456
  57,096
  59,873
  62,794
Debt-to-equity ratio
  1.376
  1.400
  1.430
  1.460
  1.490
  1.520
  1.560
  1.590
  1.620
  1.660
  1.690
  1.730
  1.760
  1.790
  1.820
  1.850
  1.880
  1.910
  1.940
  1.960
  1.990
  2.010
  2.030
  2.060
  2.080
  2.100
  2.120
  2.140
  2.160
  2.170
  2.190
Adjusted equity ratio
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  468
  593
  605
  620
  637
  655
  675
  696
  719
  743
  768
  894
  923
  954
  987
  1,021
  1,058
  1,096
  1,137
  1,180
  1,225
  1,273
  1,323
  1,376
  1,432
  1,491
  1,552
  1,617
  1,686
  1,757
  1,833
Depreciation, amort., depletion, $m
  470
  550
  561
  574
  587
  602
  618
  636
  655
  675
  696
  585
  609
  635
  663
  692
  723
  756
  790
  827
  865
  905
  948
  993
  1,041
  1,090
  1,143
  1,198
  1,256
  1,317
  1,382
Funds from operations, $m
  1,232
  1,143
  1,166
  1,194
  1,224
  1,257
  1,293
  1,332
  1,373
  1,417
  1,465
  1,479
  1,532
  1,589
  1,649
  1,713
  1,781
  1,852
  1,927
  2,006
  2,090
  2,178
  2,271
  2,369
  2,472
  2,581
  2,695
  2,815
  2,942
  3,075
  3,214
Change in working capital, $m
  -44
  -6
  -7
  -8
  -9
  -10
  -10
  -11
  -12
  -13
  -14
  -15
  -16
  -17
  -18
  -19
  -20
  -21
  -22
  -23
  -25
  -26
  -27
  -29
  -30
  -32
  -34
  -35
  -37
  -39
  -41
Cash from operations, $m
  1,276
  1,418
  1,173
  1,202
  1,233
  1,267
  1,304
  1,343
  1,385
  1,430
  1,479
  1,494
  1,548
  1,606
  1,667
  1,732
  1,800
  1,873
  1,949
  2,030
  2,115
  2,204
  2,299
  2,398
  2,503
  2,613
  2,729
  2,851
  2,979
  3,114
  3,256
Maintenance CAPEX, $m
  0
  -406
  -416
  -427
  -439
  -453
  -468
  -484
  -501
  -520
  -540
  -562
  -585
  -609
  -635
  -663
  -692
  -723
  -756
  -790
  -827
  -865
  -905
  -948
  -993
  -1,041
  -1,090
  -1,143
  -1,198
  -1,256
  -1,317
New CAPEX, $m
  -1,311
  -200
  -228
  -254
  -281
  -307
  -334
  -361
  -388
  -416
  -444
  -474
  -504
  -535
  -568
  -602
  -636
  -673
  -711
  -750
  -792
  -835
  -880
  -927
  -976
  -1,027
  -1,081
  -1,138
  -1,197
  -1,259
  -1,324
Cash from investing activities, $m
  -1,587
  -606
  -644
  -681
  -720
  -760
  -802
  -845
  -889
  -936
  -984
  -1,036
  -1,089
  -1,144
  -1,203
  -1,265
  -1,328
  -1,396
  -1,467
  -1,540
  -1,619
  -1,700
  -1,785
  -1,875
  -1,969
  -2,068
  -2,171
  -2,281
  -2,395
  -2,515
  -2,641
Free cash flow, $m
  -311
  813
  530
  521
  513
  507
  502
  499
  496
  495
  494
  458
  459
  461
  464
  468
  472
  477
  483
  489
  497
  505
  514
  523
  534
  545
  557
  570
  584
  599
  615
Issuance/(repayment) of debt, $m
  630
  355
  360
  402
  444
  486
  528
  570
  614
  658
  703
  749
  797
  847
  898
  952
  1,007
  1,064
  1,124
  1,187
  1,252
  1,320
  1,391
  1,466
  1,544
  1,625
  1,710
  1,800
  1,893
  1,991
  2,094
Issuance/(repurchase) of shares, $m
  -65
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  602
  355
  360
  402
  444
  486
  528
  570
  614
  658
  703
  749
  797
  847
  898
  952
  1,007
  1,064
  1,124
  1,187
  1,252
  1,320
  1,391
  1,466
  1,544
  1,625
  1,710
  1,800
  1,893
  1,991
  2,094
Total cash flow (excl. dividends), $m
  291
  1,168
  890
  923
  957
  993
  1,030
  1,069
  1,110
  1,152
  1,197
  1,207
  1,257
  1,308
  1,362
  1,419
  1,479
  1,541
  1,607
  1,676
  1,749
  1,825
  1,905
  1,989
  2,078
  2,170
  2,268
  2,370
  2,477
  2,590
  2,709
Retained Cash Flow (-), $m
  -169
  -128
  -142
  -159
  -175
  -192
  -208
  -225
  -242
  -260
  -277
  -296
  -315
  -334
  -355
  -376
  -397
  -420
  -444
  -468
  -494
  -521
  -549
  -579
  -609
  -641
  -675
  -710
  -747
  -786
  -826
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,040
  748
  764
  782
  801
  822
  844
  868
  893
  920
  912
  942
  974
  1,008
  1,044
  1,081
  1,121
  1,163
  1,208
  1,255
  1,304
  1,356
  1,411
  1,468
  1,529
  1,593
  1,660
  1,730
  1,804
  1,882
Discount rate, %
 
  8.70
  9.14
  9.59
  10.07
  10.57
  11.10
  11.66
  12.24
  12.85
  13.50
  14.17
  14.88
  15.62
  16.41
  17.23
  18.09
  18.99
  19.94
  20.94
  21.98
  23.08
  24.24
  25.45
  26.72
  28.06
  29.46
  30.93
  32.48
  34.11
  35.81
PV of cash for distribution, $m
 
  957
  628
  581
  533
  485
  437
  390
  344
  301
  259
  212
  178
  148
  120
  96
  76
  58
  44
  33
  24
  17
  11
  8
  5
  3
  2
  1
  1
  0
  0
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States and Canada. The company offers water and wastewater services to approximately 1,600 communities in 16 states. It operates approximately 81 surface water treatment plants with approximately 522 groundwater treatment plants and 1,022 groundwater wells; 121 wastewater treatment facilities, 1,284 treated water storage facilities, 1,433 pumping stations, 80 dams, and 49,635 miles of mains and collection pipes. The company also undertakes contracts to design, build, operate, and maintain water and wastewater facilities for military bases, municipalities, the food and beverage industry, and other customers. In addition, it provides warranty-type services to homeowners and smaller commercial customers to protect against the cost of repairing broken or leaking water pipes or clogged or blocked sewer pipes, as well as interior electric line repairs; and water sourcing, transfer services, pipeline construction, water and equipment hauling, and water storage solutions for natural gas exploration and production companies. The company serves residential customers; commercial customers, such as offices, retail stores, and restaurants; industrial customers, including manufacturing and production operations; public authorities, which comprise government buildings and other public sector facilities; and other water utilities, as well as supplies water to public fire hydrants for firefighting purposes, and private fire customers for use in fire suppression systems in office buildings and other facilities, as well as to other water utilities. American Water Works Company, Inc. serves approximately 15 million people with drinking water, wastewater, and other water-related services in 47 states, the District of Columbia, and Ontario, Canada. The company was founded in 1886 and is headquartered in Voorhees, New Jersey.

FINANCIAL RATIOS  of  American Water Works (AWK)

Valuation Ratios
P/E Ratio 30.9
Price to Sales 4.4
Price to Book 2.8
Price to Tangible Book
Price to Cash Flow 11.3
Price to Free Cash Flow -412.8
Growth Rates
Sales Growth Rate 4.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 13%
Cap. Spend. - 3 Yr. Gr. Rate 6%
Financial Strength
Quick Ratio 0
Current Ratio 0.2
LT Debt to Equity 110.4%
Total Debt to Equity 137.6%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.7%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital 3.9%
Ret/ On T. Cap. - 3 Yr. Avg. 4%
Return On Equity 9.1%
Return On Equity - 3 Yr. Avg. 9.1%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 47.5%
EBITDA Margin - 3 Yr. Avg. 47.9%
Operating Margin 32.7%
Oper. Margin - 3 Yr. Avg. 33.3%
Pre-Tax Margin 23.3%
Pre-Tax Margin - 3 Yr. Avg. 23.9%
Net Profit Margin 14.2%
Net Profit Margin - 3 Yr. Avg. 14.4%
Effective Tax Rate 39.2%
Eff/ Tax Rate - 3 Yr. Avg. 39.3%
Payout Ratio 55.8%

AWK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AWK stock intrinsic value calculation we used $3302 million for the last fiscal year's total revenue generated by American Water Works. The default revenue input number comes from 2016 income statement of American Water Works. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AWK stock valuation model: a) initial revenue growth rate of 2.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.7%, whose default value for AWK is calculated based on our internal credit rating of American Water Works, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of American Water Works.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AWK stock the variable cost ratio is equal to 66%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for AWK stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.8% for American Water Works.

Corporate tax rate of 27% is the nominal tax rate for American Water Works. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AWK stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AWK are equal to 253.2%.

Life of production assets of 20.6 years is the average useful life of capital assets used in American Water Works operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AWK is equal to -7.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5218 million for American Water Works - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 181.818 million for American Water Works is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of American Water Works at the current share price and the inputted number of shares is $14.8 billion.


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COMPANY NEWS

▶ Hate Risk? You'll Love This Market-Crushing Stock   [Jun-06-17 09:07AM  Motley Fool]
▶ Missouri American Water Name Being Used in Check Scam   [Jun-02-17 03:36PM  Business Wire]
▶ Illinois American Water Releases Water Quality Reports   [Jun-01-17 02:48PM  Business Wire]
▶ Is It Time to Invest in Water?   [May-25-17 06:10PM  GuruFocus.com]
▶ 3 Dividend Stocks for Retirement   [11:48AM  Motley Fool]
▶ American Water Works meets 1Q profit forecasts   [May-03-17 05:58PM  Associated Press]
▶ Pennsylvania American Water Files Rate Request   [Apr-28-17 01:23PM  Business Wire]
▶ DUK, AWK, FE: Why These Utility Stocks Are in Focus   [Apr-24-17 03:06PM  Market Realist]
Stock chart of AWK Financial statements of AWK Annual reports of AWK
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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