The York Water Company (YORW) Stock Valuation — PE Analysis
Regulated Water · NASDAQ
Current Price
$29.96
PE Ratio (TTM)
20.3x
Intrinsic Value
$33.66
+11.0% margin of safety
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.
Base case
YORW base case PE valuation
A base case PE valuation for YORW estimates a fair value of about $33.66 per share, against a current price of $29.96. The model assumes 7.9% annual earnings growth, a 20x target PE multiple, and a 10% discount rate.
Intrinsic Value
$33.66
Margin of safety
+11.0%
Expected annual return
+2.4%
Base case assumptions: 7.9% annual earnings growth, 20x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the YORW PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The York Water Company respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
20.3x
PEG Ratio
2.79
Earnings Yield
4.92%
ROE (TTM)
8.9%
Revenue/Share (TTM)
$0.11
Dividend Yield
2.99%
Debt/Equity
0.98x
Frequently Asked Questions
What is the PE ratio of YORW?
The trailing twelve-month PE ratio of YORW reflects how much investors pay per dollar of The York Water Company's earnings. This metric is most useful when compared to Regulated Water peers and the company's own historical range.
Is YORW overvalued based on PE ratio?
YORW's PE of 20.3x combined with a PEG ratio of 2.79 provides a growth-adjusted perspective. A PEG above 2.0 suggests YORW may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Regulated Water, a DCF analysis may be more appropriate.
How do I value YORW stock using PE ratio?
To value The York Water Company using PE: (1) Compare the current PE (20.3x) against the Regulated Water median to assess relative pricing, (2) check the PEG ratio (2.79) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of YORW?
YORW's PEG ratio is 2.79, calculated by dividing the PE ratio (20.3x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for YORW stock valuation?
PE ratio gives a quick relative read — how YORW is priced versus Regulated Water peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See YORW DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Utilities valuationsP/E and DCF value YORW with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.