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American Electric Power Company (AEP) Fair Value & Analysis

Utilities · US · Market cap $69.5B

AE American Electric Power Company logo American Electric Power Company AEP · US
Price$133.74
Fair Value$78.20
Upside-41.5%
Quality67/100
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Evidence: High Range $54.13 – $124.52

Fair value as of: Jun 24, 2026

From 25 valuation models · updated 8 days ago

Share price +9.0% over the past month.

Price vs Fair Value (12 months)

$133.91 $96.64 Fair Value $78.20 Jul 2025 Jul 2026

12‑month range $96.64 – $133.91 · fair‑value band $54.13 – $124.52 · the $133.74 price screens above the $78.20 fair value. As of Jun 24, 2026.

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Analysis

American Electric Power Company (AEP) currently trades at $133.74, while our model-based Fair Value estimate is $78.20 — implying the stock looks roughly 41.5% overvalued today. We read business quality at 67/100 (solid quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, American Electric Power Company generated revenue of $22.4B at a net margin of 16.3%. Revenue grew 10.2% year over year. It earns a return on equity of 12.6%. Net debt stands at $50.0B. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) $22.4B
Revenue growth (YoY) +10.2%
Net margin 16.3%
Return on equity 12.6%
Free cash flow $6.8B FY2025
P/E ratio 18.9
More key figures
Operating margin 23.7%
EPS (TTM) $6.76
Dividend yield 3.0%
EPS growth (YoY) +6.7%
Net debt $50.0B FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

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.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Revenue +7.0%/yr
FY21 $16.6B
FY22 $19.3B
FY23 $19.4B
FY24 $19.9B
FY25 $21.8B
Net income +9.5%/yr
FY21 $2.5B
FY22 $2.3B
FY23 $2.2B
FY24 $3.0B
FY25 $3.6B

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Recent news

External third-party headlines (Yahoo Finance, Reuters and others) — not an editorial selection, not financial advice.

Similar stocks

6 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Jun 24, 2026).

Stock Price Fair Value vs Fair Value
NextEra Energy, Inc NEE $86.08 $30.24 -65%
The Southern Company SO $93.43 $58.74 -37%
Duke Energy Corporation DUK $121.82 $63.83 -48%
National Grid plc NGG 61,175 ARS 43,418 ARS -29%
Dominion Energy, Inc D $68.04 $38.74 -43%
Entergy Corporation ETR $113.81 $53.93 -53%

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Frequently asked questions

Is American Electric Power Company (AEP) undervalued?
As of Jun 24, 2026, our model estimates a fair value of $78.20 versus a price of $133.74 — about −42% (overvalued). Model-based estimate, not financial advice.
What is the fair value of AEP?
Our model-based fair value for American Electric Power Company is $78.20 (as of Jun 24, 2026), built from audited fundamentals. The current price is $133.74.
What is the quality score of AEP?
American Electric Power Company has a Quality Score of 67/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of American Electric Power Company (AEP)?
American Electric Power Company reported trailing-twelve-month revenue of about $22.4B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of AEP?
The net profit margin of American Electric Power Company is about 16.3%, meaning it keeps roughly 16.3% of revenue as net income. Based on the latest reported figures.
Does American Electric Power Company pay a dividend?
American Electric Power Company currently shows a dividend yield of about 2.98% relative to its recent price (as of Jun 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.