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American Electric Power Company (0HEC) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of American Electric Power Company $109, price $120, upside -8.9%, quality 46 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? No
- Good quality? No
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Some data
Sep 24, 2026
American Electric Power Company
0HEC · LSELow PriorityFair Value upside is limited and quality is weak.
·Fair value $109.15 · Fairly valued (−8.9%)
!Quality 46/100
!Expensive Growth (revenue 5y +7.9 %/yr)
✓Solidly profitable · 16.3% net margin (TTM)
!Moderate debt · negative free cash flow
!3.1% dividend yield · Watch coverage
!Moderate moat 60/100
!Evidence only medium, so the estimate is less certain
What runs behind every stock
26
valuation models
8 families, DCF to NCAV
37
quality factors
margins, balance sheet, cashflow, debt
6
AI factors
moat, what no ratio measures
2,000+
data points
verified, per stock, median
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $64.19 – $138.21 · fair‑value band $76.41 – $138.05 · the $119.78 price screens above the $109.15 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
Company profile
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.
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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.
Stock analysis
American Electric Power Company (0HEC) currently trades at $119.78, while our model-based Fair Value estimate is $109.15, so the stock looks roughly fairly valued today (gap 9.7%).
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Valuation
Bull case: the Multiples group reads highest at a median of $110.44 per share, and 3 of the 13 models we run sit above the $119.78 price.
Bear case: the Asset-Based group reads lowest at $42.31, and 10 of the 13 models stay below the price. Evidence for this calculation is medium.
Scenario range: $76.41 (bear) to $138.05 (bull), the price of $119.78 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 46/100 (below-average quality), in the Utilities sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
American Electric Power Company reported revenue of $21.8B in FY2025 versus $16.6B in FY2021, a compound +7.0%/yr. Reported net income was $3.6B in FY2025, compounding +9.5%/yr from FY2021.
Key figures
Market cap $64.4B · P/E ratio 0.3 · P/S ratio 0.04 · EPS (TTM) $5.22 · Dividend yield 3.1% · Net margin 16.4% · Return on equity 12.6% · Return on assets (EBIT) 4.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 13% below its 52-week high and 8% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Utilities peers we cover trades at −34% fair-value upside, at −9%, 0HEC screens cheaper than that median.
Fair Value models
Bear $76.41
Fair Value $109.15
Bull $138.05
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($1.10 per share) are deliberately not added.
Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.
Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
Residual Income
$57.24
$64.80
$83.01
76
EPV
$29.68
$43.57
$55.54
73
ROIC Compounder
$29.68
$43.57
$55.54
71
All 13 models by family
Earnings-Based
Graham-Dodd
$49.37
$122.95
$159.45
65
PEG = 1.0
$22.41
$32.02
$41.62
57
EPV
$29.68
$43.57
$55.54
73
Multiples
P/E Multiple
$98.01
$130.68
$163.35
63
P/S Multiple
$82.83
$110.44
$138.05
58
P/B Multiple
$85.25
$113.66
$142.08
55
EV/EBIT
$62.65
$102.95
$143.25
64
EV/EBITDA
$75.42
$119.98
$164.53
66
EV/Revenue
$19.07
$52.20
$85.33
50
Asset-Based
NCAV (Graham)
$31.57
$42.31
$63.15
54
Economic Profit
Residual Income
$57.24
$64.80
$83.01
76
ROIC Compounder
$29.68
$43.57
$55.54
71
Growth Earnings
Growth-Adj P/E
$76.41
$109.15
$141.90
67
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Set up alert →Quality Score breakdown
Overall quality
46/100
Of which business quality 43 · Market factors (momentum, volatility) 54
Profitability
33
Margins and returns on capital today
Quality Growth
49
Are margins and returns improving?
Cashflow
49
Earnings quality: real cash, not paper profit
Fin. Strength
26
Balance sheet, leverage, solvency risk
Investment
40
Disciplined investing over empire-building
Low Volatility
95
Calm price path (market factor)
Momentum
36
Price trend over the last 3–12 months (market factor)
52W Momentum
39
Distance to the 52-week high (market factor)
Net Issuance
68
Share count: buybacks or dilution?
Revenue & earnings trend
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.
48/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+9.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.9%
Start year 2020 (pandemic). Over 10 years: +2.9% a year
Revenue growth 13 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.9%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis.
+13.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+10.5%
Dividend (yield on the price)3.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.8.5% vs 7.5%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.20% → 24%
Start year 2020 (pandemic)
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Context: sector, industry, market
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: UK Stocks
- Valuation of the UK market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
None of the checked exposures detected
Similar stocks
10 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| NextEra Energy, Inc NEE | $75.74 | $29.97 | −60% |
| The Southern Company SO | $82.89 | $57.57 | −31% |
| Duke Energy Corporation DUK | $113.41 | $74.88 | −34% |
| Dominion Energy, Inc D | $60.76 | $37.84 | −38% |
| Entergy Corporation ETR | $98.10 | $37.37 | −62% |
| Xcel Energy Inc XEL | $69.39 | $54.92 | −21% |
| Exelon Corporation EXC | $40.32 | $36.01 | −11% |
| Consolidated Edison, Inc ED | $103.33 | $47.76 | −54% |
| PG&E Corporation PCG | $12.34 | $17.85 | +45% |
| Public Service Enterprise Group PEG | $67.89 | $33.50 | −51% |
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Frequently asked questions
Is American Electric Power Company (0HEC) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $109.15 versus a price of $119.78, about −9% upside (fairly valued).
What is the fair value of 0HEC?
Our model-based fair value for American Electric Power Company is $109.15 (as of Sep 24, 2026), built from audited fundamentals. The current price: $119.78.
What is the quality score of 0HEC?
American Electric Power Company has a Quality Score of 46/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for American Electric Power Company (0HEC)?
Our model-based price target is the fair value of $109.15 (as of Sep 24, 2026) from 13 valuation models. Cautious scenario $76.41, optimistic scenario $138.05. It is a calculation from audited fundamentals, not an analyst target.
What is the American Electric Power Company stock forecast for 2026?
Our models put fair value at $109.15, about −9% upside versus a price of $119.78 (fairly valued). Cautious scenario $76.41, optimistic scenario $138.05. The calculation is refreshed regularly with new filings.
What is the revenue of American Electric Power Company (0HEC)?
American Electric Power Company reported trailing-twelve-month revenue of about $22.4B (latest available figure, as of Sep 24, 2026).
Does American Electric Power Company pay a dividend?
American Electric Power Company currently shows a dividend yield of about 3.14% relative to its recent price (as of Sep 24, 2026).
What is the intrinsic value of American Electric Power Company (0HEC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For American Electric Power Company it is $109.15 per share (as of Sep 24, 2026), against a price of $119.78. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is American Electric Power Company stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 0HEC trades above its calculated fair value: price $119.78, fair value $109.15, a gap of about −9% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0HEC?
No. The price is what the market pays today ($119.78); the fair value is what the company's own numbers justify ($109.15). For American Electric Power Company the two are $10.63 per share apart. That gap is exactly why we show both numbers side by side.
How much is American Electric Power Company worth?
The market values American Electric Power Company at about $64.4B (market capitalisation, as of Sep 24, 2026). Per share that is $119.78; our models calculate a fair value of $109.15 per share.
What do the bullish and bearish scenarios say about 0HEC?
Our models span a range for American Electric Power Company: cautious scenario $76.41, base $109.15, optimistic $138.05 per share (as of Sep 24, 2026, price $119.78). The range comes from different growth and margin assumptions, not from analyst opinions.
How far is 0HEC from its 52-week high?
American Electric Power Company trades at $119.78, about 13% below its 52-week high of $138.21 and 8% above the low of $110.89 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $109.15 is for.
Which stocks are comparable to American Electric Power Company?
From the same area (Utilities) we also value NextEra Energy, Inc, The Southern Company, Duke Energy Corporation, Dominion Energy, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is American Electric Power Company stock attractive at the current price?
The data as of Sep 24, 2026: price $119.78, calculated fair value $109.15 (−9%), Quality Score 46/100, from 13 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0HEC calculated?
We run American Electric Power Company through 13 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $109.15, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. American Electric Power Company itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of American Electric Power Company (0HEC)?
The closing price on Oct 2, 2026 was $119.78. Our model-based fair value is $109.15, about −9% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with American Electric Power Company right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($76.41 to $138.05) leaves room in how you read the outcome.
Where does the earnings growth of American Electric Power Company (0HEC) come from?
Earnings per share at American Electric Power Company grew +8.2 % a year from 2014 to 2025. Broken into its drivers: revenue per share +1.5 %, EBIT margin +1.7 %, tax rate +3.9 %, residual (interest, one-offs) +0.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of American Electric Power Company
How large is the market capitalisation of American Electric Power Company (0HEC)?
The market capitalisation of American Electric Power Company is $64.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/E ratio of American Electric Power Company (0HEC)?
The price-to-earnings ratio of American Electric Power Company is 0.3 (as of Jul 24, 2026). Price to earnings: how many years of current profit you pay for the stock. A P/E of 10 means ten years of profit.
What is the P/S ratio of American Electric Power Company (0HEC)?
The price-to-sales ratio of American Electric Power Company is 0.04 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of American Electric Power Company (0HEC)?
Earnings per share at American Electric Power Company are $5.22 (price ÷ EPS = P/E 0.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of American Electric Power Company (0HEC)?
The dividend yield of American Electric Power Company is 3.1% (payout 72.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of American Electric Power Company (0HEC)?
The net margin of American Electric Power Company is 16.4% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of American Electric Power Company (0HEC)?
The return on equity (ROE) of American Electric Power Company is 12.6% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of American Electric Power Company (0HEC)?
On an EBIT basis the return on assets of American Electric Power Company is 4.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of American Electric Power Company (0HEC)?
The operating margin of American Electric Power Company is 23.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at American Electric Power Company (0HEC)?
Revenue at American Electric Power Company is growing +10.2% versus a year earlier (3y avg +4.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at American Electric Power Company (0HEC)?
Earnings per share at American Electric Power Company are growing +6.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does American Electric Power Company (0HEC) generate?
The free cash flow of American Electric Power Company is −$1.6B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does American Electric Power Company (0HEC) carry?
The net debt of American Electric Power Company is $50.0B (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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