The York Water Company (YORW) Stock Valuation — DCF Analysis
Regulated Water · NASDAQ
Current Price
$29.88
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Essential Service Monopoly
As a regulated water utility, York Water operates as a de facto monopoly in its service territory. This essential service nature creates a captive customer base with limited alternatives.
↑Long-Term Infrastructure Investment
Decades of investment in water and wastewater infrastructure create high barriers to entry for potential competitors. Replacing these assets would be prohibitively expensive and time-consuming.
↑Regulated Rate Structure
The regulated nature of the industry allows York Water to earn a fair return on its investments, providing a degree of revenue predictability and stability. This insulates it from some market volatility.
INVESTMENT RISKS
↓Dilution from Stock Offerings
Recent stock offerings, while raising capital, dilute existing shareholder ownership and can negatively impact share price, as seen in April 2026. This can signal a need for external funding over internal cash generation.
↓Interest Rate Sensitivity
As a capital-intensive utility, York Water relies on debt financing. Rising interest rates can increase borrowing costs, impacting profitability and the cost of future infrastructure projects.
↓Regulatory Scrutiny and Rate Case Uncertainty
Changes in regulatory policy or unfavorable outcomes in rate cases can impact revenue and profitability. The company is subject to ongoing oversight and approval processes for its services and pricing.
Customize the YORW valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for The York Water Company respond.
Open DCF Calculator for YORWCompany Overview
The York Water Company specializes in the acquisition, treatment, and delivery of potable water. Beyond its core water supply operations, the firm manages a comprehensive wastewater network, comprising three distinct collection systems and five full-service collection and purification plants. Its primary water sources include Lake Williams and Lake Redman, two reservoirs with a combined capacity of approximately 2.2 billion gallons. This supply is augmented by a 15-mile conduit channeling water from the Susquehanna River to Lake Redman, alongside nine active groundwater wells providing water to customers in Adams County. The company serves a diverse industrial customer base, spanning sectors such as home furnishings, electronics manufacturing, food processing, paper production, defense materials, textile fabrication, climate control systems, cleaning product formulation, sports equipment, and motorcycle assembly. These services reach 51 communities across three counties in the south-central portion of Pennsylvania. Established in 1816, The York Water Company is headquartered in York, Pennsylvania.
Financial Metrics — YORW Stock Valuation Data
Revenue/Share (TTM)
$0.11
FCF/Share (TTM)
$-2.80
ROIC (TTM)
4.1%
ROE (TTM)
8.9%
P/FCF
n/m
EV/EBITDA
21.3x
FCF Yield
-8.33%
Debt/Equity
0.98x
YORW currently has negative free cash flow, so cash-flow ratios such as P/FCF and FCF yield do not give a meaningful read on whether the stock is cheap or expensive. A DCF valuation is unreliable until cash generation turns positive — focus on the path to profitability instead.
Frequently Asked Questions
What is the intrinsic value of YORW?
The York Water Company currently generates $-2.80 in free cash flow per share. At the current price of $29.88, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is YORW undervalued?
YORW currently has negative free cash flow, so its P/FCF ratio is not meaningful and cannot tell you whether the stock is cheap or expensive. With cash flow negative, a DCF-based undervalued or overvalued judgment is unreliable — look at the path back to positive cash generation instead.
How do I value YORW stock using DCF?
To perform a DCF valuation on The York Water Company: (1) Start with the trailing free cash flow per share ($-2.80) 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 — with a debt-to-equity of 0.98x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to YORW?
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 company will produce over the next 5-10 years, shaped by Regulated Water trends, 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.
How does WACC affect YORW stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For YORW, with a debt-to-equity ratio of 0.98x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 21.3x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See YORW PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Utilities valuationsDCF and P/E value YORW with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.