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American Electric Power Company, Inc. — Intrinsic Value & Fair Price

AEP
NASDAQUtilitiesRegulated ElectricCIK 0000004904aep.comAbout AEP
Last close · Oct 16, 2026127.14+2.85 (+2.29%)
Market cap$69.2B
Model value · P/E · own history
126.67
American Electric Power closed at $127.14 — right at the model value.
120.24the model's range134.02

P/E · own history leads for a regulated utility. From its own five-year median P/E applied to its earnings.

Other models
7.57 – 214.31
Wall St. target
135.00 6% below
Above model, 1y
16 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
2.99%
Past 2 years
low 2.73%high 3.95%
Dividends per share, a year at a time
$2.96Aug ’21$3.12Aug ’22$3.32Aug ’23$3.52Aug ’24$3.72Aug ’25$3.80TTM
Dividends / free cash flow, FY2025
57.5%
Raised
16 years in a row
Growth, 5 yrs
5.1% a year
Last change
+2.2% · Nov 2025
Every payment, with ex-dates · latest $0.95, paid Sep 10, 2026

Research on AEP

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How it is valued

Valued asRegulated utility
Low/slowing growth (~6% recent)Moderate margins (17% net margin)Pays dividendsHighly cyclical earningsStrong FCF yield (5.0%)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for utilities
P/E
19.1×
EV / EBITDA
12.7×
FCF yield
10.3%
Dividend yield, TTM
2.99%
Beta
0.47
Cost of capital (WACC)
6.55%
Full financials

Analyst actions

third-party, quoted
10-13Keybanc · “Overweight” from “Sector Weight”upgrade
10-12KeyBanc · target133.00
09-21UBS · target139.00
08-21Morgan Stanley · target135.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label
4 more companies list AEP as a comparable

The weekly

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About American Electric Power

American Electric Power Company, Inc. (AEP) operates as a prominent electric utility holding company, with its core business encompassing the generation, transmission, and delivery of electricity. Serving both retail and wholesale clients across the United States, AEP organizes its extensive operations into several key segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. The firm produces its electrical power from a diverse portfolio of energy sources, including coal, lignite, natural gas, nuclear, hydroelectric, solar, and wind power, alongside other emerging technologies. Beyond direct consumer sales, AEP also functions as a major wholesale electricity supplier, providing power to other utility companies, rural electric cooperatives, municipalities, and various other participants within the energy market. Incorporated in 1906, the company's corporate headquarters are situated in Columbus, Ohio.

CEO
William J. Fehrman
Headquarters
Columbus, OH
Employees
17,581
IPO
1962-01-02
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.