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STOCK COMPARISON

American Electric Power Co vs Constellation Energy: Fair Value & Quality

Both stocks run through our valuation models. Here is how American Electric Power Co (AEP) and Constellation Energy (CEG) compare, as of Sep 4, 2026.

As of Sep 4, 2026, Fair Value Calculator sees American Electric Power Co as the less overvalued of the two: American Electric Power Co trades at $125 versus a fair value of $77.23 (-38%), while Constellation Energy trades at $285 versus $88.09 (-69%).
American Electric Power Co
AEP · USD · Utilities
-38%
upside to fair value
overvalued
Price$125
Fair Value$77.23
Quality60/100
Constellation Energy
CEG · USD · Utilities
-69%
upside to fair value
overvalued
Price$285
Fair Value$88.09
Quality55/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

American Electric Power CoConstellation Energy
Valuation
20.1×P/E (TTM)22.4×
3.27×P/S (TTM)3.08×
2.36×P/B6.34×
12.8×EV/EBITDA12.0×
2.31×PEG3.74×
−38.1%Fair value upside−69.1%
3.0%Dividend yield0.6%
$3.76Dividend per share$1.59
Profitability
24%Operating margin22%
1.22×EBIT margin trend (5Y)8.07×
13%Return on equity16%
3%Return on assets4%
Growth
10%Revenue growth (YoY)64%
4.1%Avg. growth/yr (3Y)1.5%
7.9%Avg. growth/yr (5Y)7.7%
+12.2%Value creation/yr+30.6%
Balance & size
2.6×Interest coverage (EBIT/interest)6.0×
1.42×Debt / equity0.50×
$73BMarket cap$92B
healthyGrowth qualityhealthy

American Electric Power Co leads: 8 to 7 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

American Electric Power Coof which business quality 57 · market factors 62 Constellation Energyof which business quality 52 · market factors 34
ProfitabilityMargins and returns on capital today
33
46
Quality GrowthAre margins and returns improving?
48
43
CashflowEarnings quality: real cash, not paper profit
99
46
Fin. StrengthBalance sheet, leverage, solvency risk
14
43
InvestmentDisciplined investing over empire-building
72
55
Low VolatilityCalm price path (market factor)
95
40
MomentumPrice trend over the last 3–12 months (market factor)
44
32
52W MomentumDistance to the 52-week high (market factor)
55
28
Net IssuanceBuybacks instead of dilution
90
90

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyAmerican Electric Power CoPrice $125Constellation EnergyPrice $285
DCF Models-37%below the price$79.05-71%below the price$83.63
Earnings-Based-79%below the price$26.32-83%below the price$49.28
Dividend Discount-56%below the price$54.71-93%below the price$20.92
Multiples-27%below the price$90.50-60%below the price$114
Asset-Based-69%below the price$38.34-90%below the price$27.24
Growth DCF-35%below the price$80.68-76%below the price$68.37
Economic Profit-69%below the price$38.60-81%below the price$54.87
Growth Earnings-22%below the price$97.43-66%below the price$97.35
Minimum-79%below the price$26.32-93%below the price$20.92
Maximum-22%below the price$97.43-60%below the price$114
Median-46%below the price$66.88-78%below the price$61.62
Geometric mean-54%below the price$57.52-80%below the price$56.05

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

American Electric Power Co: 25 of 25 models see the stock below the current price.

Constellation Energy: 25 of 25 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

American Electric Power Co
Bear $53.98Fair Value $77.23Bull $123
$125 = current price (white tick)
Constellation Energy
Bear $50.22Fair Value $88.09Bull $131
$285 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

American Electric Power Co · Utilities

Quality score60 · Top 25%
Fair value upside-38% · below median

Constellation Energy · Utilities

Quality score55 · Top 25%
Fair value upside-69% · bottom 25%

Bottom line

As of Sep 4, 2026, Fair Value Calculator sees American Electric Power Co as the less overvalued of the two: American Electric Power Co trades at $125 versus a fair value of $77.23 (-38%), while Constellation Energy trades at $285 versus $88.09 (-69%).

American Electric Power Co has the higher quality score (60/100).

See the full analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.