TacticScaleWhat American States Water Does & How It Makes Money (AWR)
Updated October 2026 · reflects American States Water's latest reported financials
California-based regulated water and electric utility holding company. It earns regulated rates from residential, commercial and industrial customers for the water and electricity it produces, buys and distributes.
How American States Water makes money
It earns regulated rates from residential, commercial and industrial customers for the water and electricity it produces, buys and distributes. It also collects contract fees for running water and wastewater services at military installations.
What American States Water does
American States Water Company, founded in 1929 and headquartered in San Dimas, California, is a utility holding company with three segments: Water, Electric and Contracted Services. Its water business buys, produces, distributes and sells water to about 265,100 customers. Its electric business distributes power to about 24,900 customers in San Bernardino County mountain communities. The Contracted Services segment provides water and/or wastewater services at various U.S. military installations. This adds contract revenue to the company's regulated utility operations.
Products & services
- Regulated water utility service
- Electric distribution service
- Military base water and wastewater services
- Water production and distribution
What is American States Water worth?
On an owner-earnings DCF, American States Water's most-likely value is about $27 versus a recent price near $82 (67% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$16) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $82 is above even the optimistic Bull case ($34) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
⚠ High leverage — net debt is 12.1× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
American Water Works (AWK) · California Water Service (CWT) · H2O America (HTO) · Essential Utilities (WTRG) · Edison International (EIX)