---
title: American Electric Power (AEP) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/aep
ticker: AEP
as_of: 2026-10-17
sector: Utilities
industry: Regulated Electric
---
# American Electric Power (AEP)

American Electric Power (AEP) closed at $127.14 on Oct 16, 2026, right at its model value of $126.67 (from its own five-year median P/E applied to its earnings).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $127.14 (Oct 16, 2026) |
| Model value (from its own five-year median P/E applied to its earnings) | $126.67 |
| Price vs model | at model value |
| Range of that model | $120.24 – $134.02 |
| Market value | $69.2B |
| P/E (fiscal 2025) | 19.1 |
| Net margin (fiscal 2025) | 16.4% |
| Free cash flow (fiscal 2025) | $3.5B |
| Dividend yield (trailing twelve months) | 2.99% |
| Beta | 0.47 |
| Cost of capital (WACC) | 6.55% |
| Business classification | Dividend Payer (Low/slowing growth (~6% recent), Moderate margins (17% net margin), Pays dividends, Highly cyclical earnings, Strong FCF yield (5.0%)) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.99% |
| Dividends per share, last 12 months | $3.80 |
| Dividends / free cash flow (fiscal 2025) | 57.5% |
| Raised | 16 years in a row |
| Growth over 5 years | 5.1% a year |
| Latest payment | $0.95, ex-date Aug 10, 2026, paid Sep 10, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 9, 2021 | $2.96 |
| To Aug 9, 2022 | $3.12 |
| To Aug 9, 2023 | $3.32 |
| To Aug 9, 2024 | $3.52 |
| To Aug 8, 2025 | $3.72 |
| Trailing twelve months (to Aug 10, 2026) | $3.80 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | cross check | $168.47 | $62.54 | $579.82 |
| DCF · Perpetuity growth · 10y | cross check | $214.31 | $92.06 | $696.21 |
| DCF · EBITDA exit · 5y | cross check | $152.45 | $73.41 | $246.02 |
| DCF · EBITDA exit · 10y | cross check | $193.89 | $99.53 | $321.32 |
| P/E · peers | cross check | $118.77 | $100.89 | $129.58 |
| P/E · own history | primary | $126.67 | $120.24 | $134.02 |
| PEG | sanity check | $60.54 | $60.54 | $60.54 |
| EV/EBITDA · peers | cross check | $101.04 | $81.04 | $132.91 |
| EV/Revenue · peers | cross check | $123.88 | $65.11 | $146.16 |
| Earnings power value | cross check | $7.57 | $0.00 | $36.70 |
| Dividend discount | cross check | $90.77 | $60.08 | $161.11 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 1 open-market sale ($250,000); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | Ferneau Kelly J | Executive Vice President | Tax withholding | 362 | $43,349.5 |
| Oct 1, 2026 | Berntsen Robert | Executive Vice President | Tax withholding | 1,425 | $170,643.8 |
| Sep 30, 2026 | FOWKE BENJAMIN G S III | Director | Grant / award | 0 | $0 |
| Sep 30, 2026 | Marriott David S | Director | Grant / award | 379 | $44,964.6 |
| Sep 30, 2026 | Meyers Charles J | Director | Grant / award | 379 | $44,964.6 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 30, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/4904/000000490426000063/aep-20260929.htm |
| Jul 30, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/4904/000000490426000059/aep-20260630.htm |
| Jul 30, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/4904/000000490426000055/aep-20260730.htm |
| Jul 21, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/4904/000000490426000048/aep-20260720.htm |
| Jun 26, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/4904/000000490426000043/a06-2026aepsx8.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Dodge & Cox | 2026-06-30 | 8,674,355 | $1.2B |
| Soros | 2026-06-30 | 768,000 | $105.1M |
| Icahn | 2026-06-30 | 434,710 | $59.5M |
| Bridgewater | 2026-06-30 | 159,591 | $21.8M |

5 tracked managers in all.

## About

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 marke…

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Source: https://sweetvaluelab.com/stocks/aep (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.