Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 151

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 151
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, Moelis noted (i) that the selected reference ranges were informed by the current and recent historical trading multiples for American Water, (ii) American Water’s larger scale, balance sheet strength, stronger financial performance and ability to earn at or above authorized returns in key jurisdictions relative to the other Selected Publicly Traded Water Utility Companies and (iii) that the Selected Publicly Traded Water Utility Companies were considered less directly comparable due to smaller size, regulatory exposure and geographic focus. Based on the foregoing analysis and its professional judgment and experience, Moelis selected a reference range of 21.5x to 24.5x for American Water’s Price / 2026E Earnings multiples and reference range of 20.5x to 23.0x for American Water’s Price / 2027E Earnings multiples. Moelis then applied such multiple ranges to American Water’s 2026E Net Income and 2027E Net Income based on the American Water Financial Projections. The implied ranges of equity values for American Water and the implied ranges of share prices for the American Water common stock derived from the selected publicly traded companies analysis for American Water based on the selected reference ranges of P/E multiples described above are presented below, and the implied ranges of share prices were compared to the closing share price for American Water common stock of $142.58 as of October 23, 2025.

| American Water                                                 |     | Implied Equity  
 Value           
 ($ in millions) |                   |     | Implied Share Price 
 ($ per share)       |                   |
| Selected Publicly Traded Companies Analysis – 2026E Net Income |     |                 | $26,078 - $29,717 |     |                     | $133.30 - $151.89 |
| Selected Publicly Traded Companies Analysis – 2027E Net Income |     |                 | $27,396 -$30,737  |     |                     | $140.03 -$157.11  |

98

Selected Publicly Traded Companies-Based Exchange Ratios and Ownership Percentage Analysis Based on the implied range of share prices for Essential common stock and American Water common stock presented in the respective DCF analyses above, Moelis calculated a range of implied exchange ratios, which are presented below. Based on the implied range of equity values for Essential and American Water presented in the respective DCF analyses above, Moelis also calculated a range of implied pro forma Essential ownership percentages, which are presented below:

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