Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 156

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 156
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2027E EBITDA multiples. Moelis then applied such multiple ranges to American Water’s 2026E EBITDA and 2027E EBITDA based on the American Water Financial Projections.

Solely for informational purposes, the implied ranges of share prices for American Water common stock derived from the selected publicly traded companies
analysis for American Water based on the selected reference ranges of TEV / EBITDA multiples described above were $133.00 to $156.67 per share and $136.38 to $162.44 per share for 2026E and 2027E, respectively. The implied ranges of share prices
were compared to the closing trading price for American Water common stock of $142.58 per share as of October 23, 2025.

Selected Precedent Transactions Analysis

Moelis also performed a selected precedent transactions analysis of each of Essential and American Water based on TEV/Rate Base
transaction multiples. In performing a selected precedent transactions analysis of each of Essential and American Water, Moelis reviewed and analyzed, among other things, TEV/ Rate Base multiples of each of the selected precedent transactions based
on publicly available historical Rate Base information for the last 12 month period, and certain other financial information and transaction data related to selected precedent transactions that Moelis believed, based on its professional judgment and
experience, were generally relevant in certain respects to Essential and American Water for purposes of its analysis. Moelis selected TEV/Rate Base transaction multiples due to the variability in P/E and TEV/EBITDA transaction multiples and
availability of data on the transactions.

While Moelis considered the selected precedent transactions, Moelis determined not to rely on a selected
precedent transactions analysis in its financial analysis because (i) the transactions were completed in materially different market and interest rate environments, (ii) the transactions had different regulatory conditions, (iii) the
companies involved in the transactions had different growth and capital expenditure profiles and (iv) the transactions had different consideration mix and pro forma ownership.

Based on its professional judgment and
experience, Moelis selected (i) a reference range of 1.6x to 1.8x for the Water Segment’s TEV / 2025E Rate Base multiples and (ii) a reference range of 1.4x to 1.7x for the Gas Segment’s TEV / 2025E Rate Base multiples. Moelis
then applied such multiple