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STOCK COMPARISON

American Electric Power vs Nextera Energy: Fair Value & Quality

Both stocks run through our valuation models. Here is how American Electric Power (AEP) and Nextera Energy (NEE) compare, as of Nov 5, 2026.

As of Nov 5, 2026, Fair Value Calculator sees American Electric Power as the less overvalued of the two: American Electric Power trades at $127 versus a fair value of $100 (−21.1%), while Nextera Energy trades at $88.25 versus $29.83 (−66.2%).
American Electric Power
AEP · USD · Utilities
−21.1%
upside to fair value
overvalued
Price$127
Fair Value$100
Quality52/100
Fair ValueQualityUptrend
Nextera Energy
NEE · USD · Utilities
−66.2%
upside to fair value
overvalued
Price$88.25
Fair Value$29.83
Quality49/100
Fair ValueQualityUptrend
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

American Electric PowerNextera Energy
Valuation
22.0×P/E (TTM)15.9×
21.2×P/E ex one-offs (FY2025)52.2×
18.4×Forward P/E (FY2027)20.2×
19.2×Median P/E at FY-end (ex one-offs where documented)46.9×
3.06×P/S (TTM)6.40×
2.24×P/B3.38×
12.6×EV/EBITDA20.2×
2.37×PEG1.67×
−21.1%Fair value upside−66.2%
3.0%Dividend yield2.8%
$3.78Dividend per share$2.44
Profitability
23.3%Operating margin33.0%
1.22×EBIT margin trend (5Y)1.06×
10.1%Return on equity14.1%
3.1%Return on assets3.2%
Growth
7.0%Revenue growth (YoY)1.6%
4.1%Avg. growth/yr (3Y)9.4%
7.9%Avg. growth/yr (5Y)8.8%
+13.9%Value creation/yr+6.8%
Balance & size
2.6×Interest coverage (EBIT/interest)1.8×
1.42×Debt / equity1.64×
$70BMarket cap$184B
healthyGrowth qualityexpensive
The P/E excluding one-off items is scored: for at least one of the two companies, special items (write-downs, restructuring, litigation) move the reported P/E by 15 % or more. The trailing P/E is shown for reference.
American Electric Power, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 6 of the years ex one-offs: 19.2. Nextera Energy, median P/E at fiscal year-end, 6 fiscal years (2020 to 2025), earnings ex one-offs: 46.9.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

American Electric Power leads: 11 to 5 metric wins.

n/a = 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 Nextera Energy
ProfitabilityHow much profit the company makes from its sales and capital
33
40
Quality GrowthAre margins and returns getting better?
48
59
CashflowDo the profits arrive as real cash?
99
61
Financial strengthDebt, balance sheet and risk of trouble
14
13
InvestmentDoes it invest with discipline instead of growing at any price?
72
30
Low VolatilityHow calm the share price moves, does not count
96
87
Price momentumPrice momentum of the last 3 to 12 months, does not count
42
40
Near the 52-week highDistance to the 52-week high, does not count
51
53
New sharesBuys back shares or issues new ones?
43
77

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 PowerPrice $127Nextera EnergyPrice $88.25
DCF Models−14.9%close to the price$108−76.0%below the price$21.15
Earnings-Based−78.0%below the price$27.90−81.4%below the price$16.39
Dividend Discount−50.4%below the price$62.88−53.4%below the price$41.13
Multiples−33.1%below the price$84.83−62.9%below the price$32.75
Asset-Based−69.8%below the price$38.26−83.3%below the price$14.72
Growth DCF+7.6%close to the price$136−88.1%below the price$10.48
Economic Profit−63.9%below the price$45.75−82.6%below the price$15.39
Growth Earnings−23.2%below the price$97.38−43.2%below the price$50.10
Matching families8 of 8
Minimum−78.0%below the price$27.90−88.1%below the price$10.48
Maximum+7.6%close to the price$136−43.2%below the price$50.10
Median−41.7%below the price$73.85−78.7%below the price$18.77
Geometric mean−47.7%below the price$66.30−75.0%below the price$22.03
Ahead family by family8 of 80 of 8

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 8 of 8), so a family without a value on one side does not distort the comparison. Ahead in a family is the stock whose fair value there sits higher relative to its price. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Family by family: American Electric Power is ahead in 8 of 8 shared families, Nextera Energy in none.

American Electric Power: 22 of 25 models see the stock below the current price.

Nextera Energy: 24 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

American Electric Power
Price $127
Fair Value $100
Bear $54.07Bull $125
Nextera Energy
Price $88.25
Fair Value $29.83
Bear $21.68Bull $50.26

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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 · Utilities

Quality score52 · above median
Fair value upside−21.1% · below median

Nextera Energy · Utilities

Quality score49 · above median
Fair value upside−66.2% · bottom 25%

Bottom line

As of Nov 5, 2026, Fair Value Calculator sees American Electric Power as the less overvalued of the two: American Electric Power trades at $127 versus a fair value of $100 (−21.1%), while Nextera Energy trades at $88.25 versus $29.83 (−66.2%).

American Electric Power has the higher quality score (52/100).

Open American Electric Power live analysis →
American Electric Power · Nextera Energy

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