Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 149

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 149
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 EBITDA and Net Income and interest expense from holding company financial debt in Net Income. As such, Moelis performed separate analyses of each respective segment of Essential and summed the results of such analyses to determine the implied equity value range and implied per share value range for the Essential common stock, as further discussed below. In determining the selected reference ranges to apply to the Water Segment’s estimated financial metrics, Moelis noted that the selected reference ranges were informed by the low and high ends of the Selected Publicly Traded Water Utility Companies, given the relative comparability with regards to regulatory jurisdictions and growth profiles. In determining the selected reference ranges to apply to the Gas Segment’s estimated financial metrics, Moelis noted (i) that the selected reference ranges were informed by the low and high ends of the Selected Publicly Traded Gas Utility Companies, given the relative comparability with regards to regulatory jurisdictions and growth profiles and (ii) that Northwest was considered, but not utilized, to inform the reference ranges due to its materially lower quality regulatory, growth and financial characteristics compared to the other Selected Publicly Traded Gas Utility Companies. In determining the selected reference ranges to apply to the Parent Segment’s estimated financial metrics, Moelis calculated the blended P/E trading multiples informed by the net income contributions of the Water Segment and the Gas Segment based on their respective contributions to the earnings of Essential. Based on the foregoing analysis and its professional judgment and experience, Moelis selected a (i) reference range of 16.5x to 23.5x for the Water Segment’s Price / 2026E Earnings multiples and reference range of 15.5x to 22.0x for Water Segment’s Price / 2027E Earnings multiples, (ii) reference range of 18.0x to 21.5x for the Gas Segment’s Price / 2026E Earnings multiples and reference range of 17.0x to 20.5x for Gas Segment’s Price / 2027E Earnings multiples and (iii) reference range of 17.2x to 22.6x for the Parent Segment’s Price / 2026E Earnings multiples and reference range of 16.2x to 21.3x for the Parent Segment’s Price / 2027E Earnings multiples. Moelis then applied such multiple ranges to each segment’s 2026E Net Income and 2027E Net Income based on the Essential Financial Projections, provided that