Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 131

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 131
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 the trading range of shares of Essential common stock for the 52-weekperiod ended October 22, 2025, which was $33.49 to $41.93. Wall Street Research Analysts Price Targets. BofA Securities reviewed publicly available equity research analyst price targets for the Essential common stock as of October 22, 2025, which indicated a range of $42.00 to $56.00 and a present value of $38.62 to $51.49 when discounted by one year at Essential’s estimated midpoint cost of equity of 8.75% derived using the capital asset pricing model. Summary of Material Company Financial Analyses of American Water Selected Publicly Traded Companies Analysis Based on BofA Securities’ review of the 2026E P/E multiples and 2027E P/E multiples observed for the selected publicly traded companies, as described in the section entitled “ —Summary of Material Company Financial Analyses of Essential—Selected Publicly Traded Companies Analysis” beginning on page 82, and on its professional judgment and experience, BofA Securities calculated ranges of implied equity value per share reference ranges for American Water by applying (i) a 2026E P/E multiple reference range of 20.25x to 23.75x to the estimate of American Water’s calendar year 2026 recurring EPS and (ii) a 2027 P/E multiple reference range of 18.25x to 21.50x to the estimate of American Water’s calendar year 2027 recurring EPS, each as reflected in the American Water forecasts. This analysis indicated the following approximate implied equity value reference ranges per share (rounded to the nearest $0.05) of American Water common stock, as compared to the closing price per share of American Water common stock as of October 22, 2025:

| Implied Equity Value 
 Reference Range      
 Per Share            
 2026E P/E            |     | 2027E P/E         |     | October 22, 2025 Closing Price Per   
 Share of American Water Common Stock |        |
|:---------------------|:----|:------------------|:----|:-------------------------------------|-------:|
| $122.90 – $144.15    |     | $119.65 – $140.95 |     | $                                    | 143.73 |

No selected publicly traded company used in this analysis is identical or directly comparable to American Water. Accordingly, an evaluation of the results of this analysis is