Regulated Water · NASDAQ
Current Price
$29.10
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on The York Water Company with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for YORWThe York Water Company impounds, purifies, and distributes drinking water. It owns and operates three wastewater collection systems; five wastewater collection and treatment systems; and two reservoirs, including Lake Williams and Lake Redman, which hold approximately 2.2 billion gallons of water. The company also operates a 15-mile pipeline from the Susquehanna River to Lake Redman; and owns nine groundwater wells that supply water to customers in the Adams County. It serves customers in the fixtures and furniture, electrical machinery, food products, paper, ordnance units, textile products, air conditioning systems, laundry detergents, barbells, and motorcycle industries in 51 municipalities within three counties in south-central Pennsylvania. The York Water Company was incorporated in 1816 and is based in York, Pennsylvania.
ROIC (TTM)
4.1%
ROE (TTM)
8.5%
FCF Yield
-8.33%
Based on trailing twelve-month data, YORW shows a free cash flow per share of N/A and a ROIC of 4.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -8.33% are important context metrics when evaluating YORW's stock valuation relative to peers.
The intrinsic value of YORW depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether YORW is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $29.10. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on The York Water Company: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Regulated Water industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting YORW's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For The York Water Company, this means projecting how much free cash flow the Regulated Water will produce over the next 5-10 years, then discounting those amounts to today's dollars. YORW's ROIC of 4.1% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For YORW, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
