Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 133

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 133
---
 BofA Securities’ financial analyses with respect to its opinion but were referenced solely for informational purposes, including, among other things, the following: 52-WeekTrading Range. BofA Securities reviewed the trading range of shares of American Water common stock for the 52-weekperiod ended October 22, 2025, which was $121.01 to $151.96. Wall Street Research Analysts Price Targets. BofA Securities reviewed publicly available equity research analyst price targets for shares of American Water common stock as of October 22, 2025 which indicated a range of $114.00 to $159.00 and a present value of $104.59 to $145.87 when discounted by one year at American Water’s estimated midpoint cost of equity of 9.0%. Summary of Material Relative and Pro Forma Financial Analyses Implied Exchange Ratio Analyses Utilizing the implied equity value reference ranges for Essential and American Water described above under the captions “— Selected Publicly Traded Companies Analysis” and “— Discounted Cash Flow Analysis” (and, for informational purposes only and not as part of BofA Securities’ financial analyses with respect to its opinion, under “— 52 Week Trading Range” and “— Wall Street Research Analysts Price Targets”) for each of Essential and American Water, as applicable, BofA Securities derived the implied exchange ratio by dividing the low end and the high end of the implied equity value reference range derived for Essential by the high end and low end of the implied equity value reference range derived for American Water, respectively, under each of the financial analyses described above. Utilizing this method, BofA Securities calculated the following approximate implied exchange ratio reference ranges:

| Financial Analyses                                               |     | Implied Exchange Ratio |                 |
| Publicly Traded Companies Analysis (2026E P/E)                   |     |                        | 0.284x – 0.376x |
| Publicly Traded Companies Analysis (2027E P/E)                   |     |                        | 0.284x – 0.379x |
| Publicly Traded Companies Analysis (2026E                        
 SotP)(1)                                                         |     |                        | 0.279x – 0.395x |
| Discounted Cash Flow Analysis                                    |     |                        | 0.239x – 0.405x |
| 52-Week Trading Range (For Reference Only)                       |     |                        | 0.220x –