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American Electric Power Company, Inc. logoAmerican Electric Power Company, Inc.AEP
$127.39+0.13%
American Electric Power Company, Inc. logo

American Electric Power Company, Inc.

AEP

$127.39

+$0.17 (+0.13%)

⊜ Compare
ProfitabilityStrong marginsGrowthSteady growthCash FlowHealthy conversionValuationFairly valued
What stands out

24.31% operating margin is above average. ROIC at 6.75%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.

What's changing

Revenue up 10.9% YoY with margins expanding 2.5pp. However, free cash flow softened 45%, worth monitoring whether this is timing or structural.

What deserves caution

Free cash flow declined 45% versus the prior year, cash generation momentum has weakened. Net debt of $49.25B represents 14.1x FCF, leverage limits flexibility.

Valuation context

18.8x earnings, 26.7x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.

Price History

+8.5%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$69.35B
EPS$6.76
P/E18.84
P/FCF26.72
EV/EBITDA13.83
FCF Yield3.7%
Div. Yield2.92%
Net Debt/FCF19.8x
52-Week Range
$113.70$138.69

Profitability & Returns

Revenue (TTM)

$22.43B

▲ +10.9% YoY

Net Income (TTM)

$3.65B

▲ +20.7% YoY

Op. Margin

24.05%

▲ +2.5pp YoY

ROIC

6.70%

▲ +2.0pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$2.60B

▼ -45.5% YoY

Op. Cash Flow (TTM)

$7.01B

▲ +2.1% YoY

Net Debt

$51.26B

Cash & Equiv.

$516M

5Y CAGR: +8.0%

5Y CAGR: -7.7%

Continue Research

SourceComputed from the 10-Q filed 5 May 2026, covering the period ending 31 Mar 2026, as reported to the SEC. Data last refreshed 2 Oct 2026. How this is calculated.

Price from market data, last close as of 21 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is American Electric Power Company (AEP) overvalued?

At a P/E of 18.8 and a price-to-free-cash-flow of 26.7, American Electric Power Company (AEP) trades above a two-stage DCF intrinsic value of about $-11.50 per share, so at $127.39 the stock looks overvalued (109.0% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, American Electric Power Company scores 41/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.9%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is American Electric Power Company's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $-11.50 per share for AEP, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $-8.62. At today's $127.39, that puts the stock about 109.0% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is American Electric Power Company a high-quality business?+

American Electric Power Company scores 41 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 24.0% operating margin and a 6.7% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does American Electric Power Company (AEP) pay a dividend, and how much?+

Yes, American Electric Power Company pays a regular dividend of about $3.71 per share per year (typically in quarterly installments), a yield of roughly 2.9% at the current price. That is a payout ratio of about 55.5% of earnings, so the dividend is well covered. American Electric Power Company has grown the dividend at roughly 7.2% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For AEP's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is American Electric Power Company a good stock to buy right now?+

That depends on valuation and quality together, not either alone. AEP currently trades above its estimated intrinsic value and scores 41/100 on quality (mixed). It also yields about 2.9%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: Electric Services

Spot a number that looks wrong? Check it in AEP's SEC filings or

Download this analysis as a PDF (Pro)

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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