AEP Stock Analysis
NMS · Utilities · Utilities - Regulated Electric
$118.35
+0.78 (+0.66%)
AEP Interactive Price Chart & Trading Signals
AEP Stock Snapshot — Valuation, Risk & Technical Signals
AEP Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$64.43B
P/E Ratio
20.48
Forward P/E
17.26
PEG Ratio
2.00
P/B Ratio
2.01
EPS
$5.78
Dividend Yield
3.21%
52W Range
$108.49 – $140.58
Beta
0.50
Volume
4.1M
ROE
10.1%
Profit Margin
13.8%
Revenue Growth
7.0%
Gross Margin
46.4%
EV/EBITDA
13.13
Analyst Target
$142.97
The trailing price-to-earnings ratio stands at 20.5x. Forward P/E of 17.3x implies earnings expansion expected. Price-to-book is 2.01x. EV/EBITDA sits at 13.13x. Market capitalization is $64.43B. Revenue is growing at 7.0% on a trailing basis. Earnings are compressing at -43.2%. Profit margins are 13.8%. Return on equity is 10.1%. Beta of 0.50 indicates defensive profile.
Analyst Consensus
Recommendation
Buy
Low Target
$128.00
Mean Target
$142.97
High Target
$173.00
Based on 20 analysts
About AEP
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, nuclear, natural gas, renewable, hydro, solar, wind, and other energy sources; owns, operates, maintains, and invests in transmission infrastructure; and engages in the retail supply, and wholesale energy trading and marketing businesses. It operates approximately 252,000 circuit miles of distribution lines; 38,000 circuit miles of transmission lines; and 25,000 MWs of regulated owned generating capacity. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.
AEP Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
General investorWatch out for
Premium valuation, Earnings declineNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
American Electric Power Company, Inc. (AEP) trades above our multi-model fair value estimate of $86.21 by approximately 27.2%. Trailing P/E: 20.5x. Profitability signals include profit margin of 13.8% and return on equity of 10.1%. Recent growth metrics show revenue growth of 7.0% and earnings growth of -43.2%. Risk profile: defensive beta of 0.50. Consensus: buy.
Valuation, Growth & Risk
Valuation
Overvalued
P/E 20.5x
Price is above what fundamentals suggest.
Growth
Expanding
Rev 7.0%
Revenue is outpacing the market.
Risk
Low
Beta 0.50
Movement is likely to track the broader market.
Valuation Snapshot
American Electric Power Company, Inc. (AEP) trades above our multi-model fair value estimate of $86.21 by approximately 27.2%. The trailing price-to-earnings ratio stands at 20.5x. Forward P/E of 17.3x suggests earnings compression ahead. Price-to-sales is 2.8x. Price-to-book is 2.0x. EV/EBITDA sits at 13.1x. Market capitalization is $64.43B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 7.0% on a trailing basis. Earnings are compressing at -43.2%. Profit margins are 13.8%. Return on equity is 10.1%. Return on assets is 3.0%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 0.50 indicates defensive profile. Net debt position is $52.92B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $142.97 implies 20.8% upside. Target range spans $128.00 to $173.00. 20 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
AEP Overvalued
American Electric Power Company, Inc. (AEP) trades above our multi-model fair value estimate of $86.21 by approximately 27.2%.
Frequently Asked Questions
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.