Assessing California Water Service Group (CWT) Valuation As Shares Trade Below Narrative Fair Value

Simply Wall St.01-12

California Water Service Group (CWT) has recently drawn investor attention following its latest share performance. The stock closed at $43.61 as of the most recent session, prompting fresh questions ...

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The stock closed at $43.61 as of the most recent session, prompting fresh questions ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-cwt/california-water-service-group/news/assessing-california-water-service-group-cwt-valuation-as-sh\">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>Assessing California Water Service Group (CWT) Valuation As Shares Trade Below Narrative Fair Value</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\">\nAssessing California Water Service Group (CWT) Valuation As Shares Trade Below Narrative Fair Value\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-12 22:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/utilities/nyse-cwt/california-water-service-group/news/assessing-california-water-service-group-cwt-valuation-as-sh><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>California Water Service Group (CWT) has recently drawn investor attention following its latest share performance. The stock closed at $43.61 as of the most recent session, prompting fresh questions ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-cwt/california-water-service-group/news/assessing-california-water-service-group-cwt-valuation-as-sh\">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":"BK4172","symbol_name":"水公用事业","start_time":0,"source_url":"https://simplywall.st/stocks/us/utilities/nyse-cwt/california-water-service-group/news/assessing-california-water-service-group-cwt-valuation-as-sh","article_id":"2603854064","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/assessing-california-water-service-group-cwt-valuation-as-sh","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2603854064","pubTimestamp":1768227858,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"California Water Service Group (CWT) has recently drawn investor attention following its latest share performance. The stock closed at $43.61 as of the most recent session, prompting fresh questions around its valuation and return profile.\nSee our latest analysis for California Water Service Group.\nRecent trading tells a mixed story, with a 2.52% 7 day share price return offset by a 90 day share price return decline of 6.76%, while the 1 year total shareholder return of 5.90% contrasts with a...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4172":"水公用事业","CWT":"California Water Service Group"},"translate_title":"评估加州水务集团(CWT)的估值，因为股票交易价格低于叙述性公允价值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CWT":1.5},"content_text":"California Water Service Group (CWT) has recently drawn investor attention following its latest share performance. The stock closed at $43.61 as of the most recent session, prompting fresh questions around its valuation and return profile. See our latest analysis for California Water Service Group. Recent trading tells a mixed story, with a 2.52% 7 day share price return offset by a 90 day share price return decline of 6.76%, while the 1 year total shareholder return of 5.90% contrasts with a 25.18% decline over three years. Overall, short term momentum has picked up slightly even as longer term returns have been weak. This keeps attention on how current pricing at $43.61 lines up with the company’s fundamentals and risk profile. If California Water Service Group has you thinking about regulated utilities and resilience, it can also be useful to broaden your search to fast growing stocks with high insider ownership. So with CWT trading at $43.61, a value score of 2, and the market implying a discount to the average analyst price target, should you see this as a genuine opportunity or a sign that future growth expectations are already reflected in the current price? AdvertisementMost Popular Narrative: 17.7% Undervalued With California Water Service Group last closing at US$43.61 against a narrative fair value of US$53, the current price sits well below that reference point, which puts the underlying assumptions squarely in focus.  Accelerating capital investment in water infrastructure and modernization, driven by increasing water scarcity, climate adaptation needs, and urban population growth, positions Cal Water to expand its regulated rate base by a projected ~12% CAGR, supporting sustained long-term revenue and cash flow growth.  Read the complete narrative. Curious what sits behind that fair value gap? Revenue growth, fatter margins, and a higher future earnings multiple all play a part, along with a discount rate just under 7%. The narrative connects those moving pieces into one valuation story, but the exact mix of assumptions may surprise you. Result: Fair Value of $53 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this story can change quickly if California’s General Rate Case drags on longer than expected, or if PFAS compliance costs outpace what regulators allow in rates. Find out about the key risks to this California Water Service Group narrative. Another View: Market Ratio Sends a Different Signal The narrative fair value points to CWT looking attractive, but the market’s own yardstick is less generous. At a P/E of 19.1x, the shares are richer than the global water utilities average at 16.3x and above a fair ratio of 17.4x, even though they sit below peer average at 23.4x. That mix suggests investors are already paying a premium versus the wider industry, with only a small cushion versus closer peers. This could limit room for error if growth or margins fall short. Does that leave you seeing a margin of safety here, or more downside risk if sentiment cools? See what the numbers say about this price — find out in our valuation breakdown. NYSE:CWT P/E Ratio as at Jan 2026 Build Your Own California Water Service Group Narrative If this story does not quite fit how you see CWT, you can stress test the numbers yourself and shape a fresh view in minutes with Do it your way. A great starting point for your California Water Service Group research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision. Looking for more investment ideas? If you are weighing up your next move, do not stop at a single stock; the right screen could surface opportunities you would otherwise miss.  Target dependable income by scanning these 12 dividend stocks with yields > 3% that may suit a portfolio focused on regular cash returns. Spot early growth stories by checking these 3530 penny stocks with strong financials that combine smaller market sizes with stronger financial underpinnings. Focus your research on these 883 undervalued stocks based on cash flows if you want ideas where current prices sit below cash flow based estimates.   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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