Is California Water Service Group (CWT) Pricing Its Mixed Long Term Returns Fairly Today

Simply Wall St.01-10

If you are wondering whether California Water Service Group is fairly priced or offering value right now, its recent share performance and valuation checks give you a useful starting point. The stock ...

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The stock ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-cwt/california-water-service-group/news/is-california-water-service-group-cwt-pricing-its-mixed-long\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is California Water Service Group (CWT) Pricing Its Mixed Long Term Returns Fairly Today</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs California Water Service Group (CWT) Pricing Its Mixed Long Term Returns Fairly Today\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-10 02:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/utilities/nyse-cwt/california-water-service-group/news/is-california-water-service-group-cwt-pricing-its-mixed-long><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether California Water Service Group is fairly priced or offering value right now, its recent share performance and valuation checks give you a useful starting point. The stock ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-cwt/california-water-service-group/news/is-california-water-service-group-cwt-pricing-its-mixed-long\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CWT","symbol_name":"California Water Service Group","start_time":0,"source_url":"https://simplywall.st/stocks/us/utilities/nyse-cwt/california-water-service-group/news/is-california-water-service-group-cwt-pricing-its-mixed-long","article_id":"2602306464","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551000-choice1-main-header/1585186812028"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/utilities/nyse-cwt/california-water-service-group/news/is-california-water-service-group-cwt-pricing-its-mixed-long","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2602306464","pubTimestamp":1767984288,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether California Water Service Group is fairly priced or offering value right now, its recent share performance and valuation checks give you a useful starting point.\nThe stock last closed at US$43.66, with returns of 0.8% over 7 days, 3.2% over 30 days, 1.7% year to date, 3.6% over 1 year, and negative returns of 25.0% over 3 years and 11.7% over 5 years.\nThose mixed returns sit against an ongoing focus from investors on regulated utilities and income oriented names...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"CWT":"California Water Service Group","BK4172":"水公用事业","DDM":"2倍做多道指ETF-ProShares"},"translate_title":"加州水务集团(CWT)今天对其混合长期回报的定价公平吗","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CWT":1.5,"DDM":1},"content_text":"If you are wondering whether California Water Service Group is fairly priced or offering value right now, its recent share performance and valuation checks give you a useful starting point. The stock last closed at US$43.66, with returns of 0.8% over 7 days, 3.2% over 30 days, 1.7% year to date, 3.6% over 1 year, and negative returns of 25.0% over 3 years and 11.7% over 5 years. Those mixed returns sit against an ongoing focus from investors on regulated utilities and income oriented names. In these areas, price moves can be influenced by interest rate expectations and sentiment toward defensive sectors. For California Water Service Group, this context helps explain why recent gains have been relatively modest while longer term returns have been weaker. On our checks, California Water Service Group scores 2 out of 6 for value. This suggests some areas of potential undervaluation alongside clear pockets of pricing risk, and we will look at what different valuation methods say before finishing with a more rounded way to assess what the stock might be worth.  California Water Service Group scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: California Water Service Group Dividend Discount Model (DDM) Analysis The Dividend Discount Model estimates what a share could be worth by projecting future dividends, applying a long term growth rate, and discounting those cash flows back to today. For California Water Service Group, the model uses a current dividend per share of US$1.39, a return on equity of 8.15%, and a payout ratio of about 53%. The implied long run dividend growth rate is capped at 3.26%, with an underlying expected growth input of 3.81%. Those figures suggest the current dividend is supported by earnings and that the company retains close to half of its profits to reinvest. Based on these assumptions, the DDM output points to an intrinsic value of roughly US$37.52 per share. Compared with the recent share price of US$43.66, this implies the stock is about 16.4% overvalued using this dividend based framework. Result: OVERVALUED Our Dividend Discount Model (DDM) analysis suggests California Water Service Group may be overvalued by 16.4%. Discover 878 undervalued stocks or create your own screener to find better value opportunities. CWT Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for California Water Service Group. Approach 2: California Water Service Group Price vs Earnings The P/E ratio is a useful way to look at profitable companies because it links what you pay for each share to the earnings that business is currently generating. In general, higher growth expectations and lower perceived risk can support a higher P/E, while slower growth or higher risk tend to justify a lower P/E. California Water Service Group is trading on a P/E of 19.08x. That sits above the Water Utilities industry average of about 16.29x, but below the peer group average of 23.18x. To add more context, Simply Wall St calculates a proprietary “Fair Ratio” for the company of 17.37x. This is the P/E level suggested by factors such as its earnings growth profile, industry, profit margins, market cap and risk characteristics. This Fair Ratio can be more useful than a simple comparison to peers or the industry because it adjusts for company specific traits rather than assuming all utilities deserve the same multiple. Comparing the Fair Ratio of 17.37x with the current P/E of 19.08x indicates that California Water Service Group is trading at a richer level than this framework would suggest. Result: OVERVALUED NYSE:CWT P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your California Water Service Group Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. With Narratives, you tell the story behind your numbers by linking your view of California Water Service Group’s future revenue, earnings and margins to a financial forecast and fair value that you can compare with the current share price. This can help you decide whether to buy or sell, all within Simply Wall St’s Community page. The platform updates these Narratives automatically when new information like news or earnings arrives. One investor might build a Narrative that supports a fair value near US$53 based on expectations similar to the analyst consensus, while another might set a much lower fair value if they focus more on risks such as regulatory delays and PFAS costs. The platform then shows you how each story translates into a different fair value relative to today’s market price. Do you think there's more to the story for California Water Service Group? Head over to our Community to see what others are saying! NYSE:CWT 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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