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Shares of SJW Rank the Lowest in Terms of EV/EBITDA Ratio in the Water Utilities Industry (SJW, AWR, AWK, CWT, MSEX)

By David Diaz

Below are the three companies in the Water Utilities industry with the lowest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

SJW ranks lowest with a an EV/EBITDA ratio of 10.51. Following is American States Water with a an EV/EBITDA ratio of 10.84. American Water Works ranks third lowest with a an EV/EBITDA ratio of 13.11.

California Water Service follows with a an EV/EBITDA ratio of 13.96, and Middlesex Water rounds out the bottom five with a an EV/EBITDA ratio of 15.99.

SmarTrend recommended that subscribers consider buying shares of Middlesex Water on March 8th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $29.80. Since that recommendation, shares of Middlesex Water have risen 28.6%. We continue to monitor Middlesex Water for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: lowest ev/ebitda ratio american states water american water works california water service middlesex water