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STOCK COMPARISON

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

Both stocks run through our valuation models. Here is how American Electric Power Co (AEP) and Nextera Energy (NEE) compare, as of Aug 8, 2026.

As of Aug 8, 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 $79.33 (-37%), while Nextera Energy trades at $84.60 versus $32.94 (-61%).
American Electric Power Co
AEP · USD · Utilities
-37%
upside to fair value
overvalued
Price$125
Fair Value$79.33
Quality62/100
Nextera Energy
NEE · USD · Utilities
-61%
upside to fair value
overvalued
Price$84.60
Fair Value$32.94
Quality52/100

Head-to-head numbers

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

American Electric Power CoNextera Energy
Valuation
20.1×P/E (TTM)22.6×
3.27×P/S (TTM)6.69×
2.36×P/B3.41×
12.8×EV/EBITDA19.3×
2.31×PEG1.95×
2.8%Dividend yield2.6%
$3.76Dividend per share$2.32
Profitability
16%Net margin29%
24%Operating margin30%
13%Return on equity10%
3%Return on assets2%
Growth
10%Revenue growth (YoY)7%
4.1%Avg. growth/yr (3Y)9.4%
7.9%Avg. growth/yr (5Y)8.8%
Balance & size
1.42×Debt / equity1.64×
$73BMarket cap$186B
healthyGrowth qualityexpensive

American Electric Power Co leads: 9 to 5 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 64 Nextera Energyof which business quality 44 · market factors 61
ProfitabilityMargins and returns on capital today
33
40
Quality GrowthAre margins and returns improving?
48
59
CashflowEarnings quality: real cash, not paper profit
99
61
Fin. StrengthBalance sheet, leverage, solvency risk
14
13
InvestmentDisciplined investing over empire-building
72
30
Low VolatilityCalm price path (market factor)
95
86
MomentumPrice trend over the last 3–12 months (market factor)
49
46
52W MomentumDistance to the 52-week high (market factor)
54
58
Net IssuanceBuybacks instead of dilution
90
65

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

American Electric Power Co

DCF Models$93.92
Earnings-Based$26.32
Dividend Discount$54.71
Multiples$106
Asset-Based$38.34
Growth DCF$80.68
Economic Profit$38.60
Growth Earnings$107

22 of 25 models see the stock below the current price.

Nextera Energy

DCF Models$17.71
Earnings-Based$16.48
Dividend Discount$37.40
Multiples$53.28
Asset-Based$17.54
Economic Profit$28.99
Growth Earnings$55.43

17 of 17 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 $54.31Fair Value $79.33Bull $125
$125 = current price (white tick)
Nextera Energy
Bear $24.70Fair Value $32.94Bull $46.73
$84.60 = 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 score62 · Top 25%
Fair value upside-37% · below median

Nextera Energy · Utilities

Quality score52 · above median
Fair value upside-61% · bottom 25%

Bottom line

As of Aug 8, 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 $79.33 (-37%), while Nextera Energy trades at $84.60 versus $32.94 (-61%).

American Electric Power Co has the higher quality score (62/100).

See the full analysis →

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.