(AEP) American Electric Power - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0255371017

Electricity, Transmission, Distribution, Generation

Stock: Electric Utilities
Age 56.1y
MCap 64,210m
Avg Vol 3.07M (359M USD)
Beta 0.066
Volatility 18.45%

EPS (Earnings per Share)

EPS (Earnings per Share) of AEP over the last years for every Quarter: "2020-12": 0.87, "2021-03": 1.15, "2021-06": 1.18, "2021-09": 1.43, "2021-12": 0.98, "2022-03": 1.22, "2022-06": 1.2, "2022-09": 1.62, "2022-12": 1.05, "2023-03": 1.11, "2023-06": 1.13, "2023-09": 1.77, "2023-12": 1.23, "2024-03": 1.27, "2024-06": 1.25, "2024-09": 1.85, "2024-12": 1.24, "2025-03": 1.54, "2025-06": 1.43, "2025-09": 1.8, "2025-12": 0,
EPS CAGR: -46.98%
EPS Trend: -17.2%
Last SUE: -4.00
Qual. Beats: 0

Revenue

Revenue of AEP over the last years for every Quarter: 2020-12: 3612.2, 2021-03: 4281.3, 2021-06: 3809.9, 2021-09: 4495.1, 2021-12: 4037.2, 2022-03: 4440.3, 2022-06: 4518.6, 2022-09: 5526.1, 2022-12: 4948.4, 2023-03: 4843.6, 2023-06: 4497.3, 2023-09: 5352.6, 2023-12: 4688, 2024-03: 5096.1, 2024-06: 4627.9, 2024-09: 5488.3, 2024-12: 4704.2, 2025-03: 5639.2, 2025-06: 5087.6, 2025-09: 6010.4, 2025-12: null,
Rev. CAGR: 11.20%
Rev. Trend: 63.0%
Last SUE: 1.57
Qual. Beats: 1

Dividends

Dividend Yield 3.42%
Yield on Cost 5y 5.55%
Yield CAGR 5y 5.67%
Payout Consistency 96.6%
Payout Ratio 62.2%
Risk via 5d forecast
Volatility 18.5%
Value at Risk 5%th 29.5%
Relative Tail Risk -2.84%
Reward TTM
Sharpe Ratio 1.18
Alpha 25.49
CAGR/Max DD 0.57
Character TTM
Hurst Exponent 0.489
Beta 0.066
Beta Downside 0.134
Drawdowns 3y
Max DD 23.36%
Mean DD 6.52%
Median DD 5.42%

Description: AEP American Electric Power December 03, 2025

American Electric Power (AEP) is a vertically integrated electric utility that generates, transmits, and distributes electricity to roughly 5.6 million retail and wholesale customers across the United States. Its operations are split among four segments-Vertically Integrated Utilities, Transmission & Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing-covering about 225 k miles of distribution lines, 40 k miles of transmission lines, and 23 GW of regulated owned generation capacity sourced from coal, natural gas, nuclear, hydro, solar, wind, and other resources.

Key recent metrics: AEP reported FY 2023 adjusted EBITDA of $9.2 billion and a regulated rate base of approximately $71 billion, supporting its ability to fund capital projects. The company’s FY 2024 Q2 adjusted EPS was $0.96, and it maintains a dividend yield near 3.3 % with a payout ratio of ~70 %. AEP’s capital-expenditure plan targets $3.5 billion in 2024, emphasizing grid modernization and a $2 billion commitment to renewable and low-carbon generation-a response to tightening FERC regulations and the broader industry shift toward decarbonization.

For a deeper, data-driven view of AEP’s valuation dynamics and scenario analysis, consider exploring the detailed model on ValueRay.

Piotroski VR‑10 (Strict, 0-10) 3.0

Net Income (3.66b TTM) > 0 and > 6% of Revenue (6% = 1.29b TTM)
FCFTA 0.02 (>2.0%) and ΔFCFTA 2.50pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)
NWC/Revenue -14.63% (prev -23.25%; Δ 8.62pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)
CFO/TA 0.06 (>3.0%) and CFO 6.86b > Net Income 3.66b (YES >=105%, WARN >=100%)
Net Debt (46.78b) to EBITDA (9.08b) ratio: 5.15 <= 3.0 (WARN <= 3.5)
Current Ratio 0.69 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)
Outstanding Shares last Quarter (538.0m) change vs 12m ago 0.82% (target <= -2.0% for YES)
Gross Margin 37.10% (prev 29.61%; Δ 7.49pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)
Asset Turnover 20.38% (prev 19.88%; Δ 0.51pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)
Interest Coverage Ratio 2.90 (EBITDA TTM 9.08b / Interest Expense TTM 1.96b) >= 6 (WARN >= 3)

Altman Z'' 0.88

(A) -0.03 = (Total Current Assets 6.86b - Total Current Liabilities 10.00b) / Total Assets 110.25b
(B) 0.14 = Retained Earnings (Balance) 15.37b / Total Assets 110.25b
(C) 0.05 = EBIT TTM 5.68b / Avg Total Assets 105.19b
(D) 0.24 = Book Value of Equity 18.83b / Total Liabilities 78.71b
Total Rating: 0.88 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 58.88

1. Piotroski 3.0pt
2. FCF Yield 1.95%
3. FCF Margin 10.10%
4. Debt/Equity 1.58
5. Debt/Ebitda 5.15
6. ROIC - WACC (= 2.86)%
7. RoE 12.79%
8. Rev. Trend 62.96%
9. EPS Trend -17.18%

What is the price of AEP shares?

As of January 20, 2026, the stock is trading at USD 119.96 with a total of 4,044,845 shares traded.
Over the past week, the price has changed by +2.91%, over one month by +4.78%, over three months by +2.62% and over the past year by +26.92%.

Is AEP a buy, sell or hold?

American Electric Power has received a consensus analysts rating of 3.29. Therefor, it is recommend to hold AEP.
  • Strong Buy: 2
  • Buy: 4
  • Hold: 14
  • Sell: 0
  • Strong Sell: 1

What are the forecasts/targets for the AEP price?

Issuer Target Up/Down from current
Wallstreet Target Price 128.5 7.1%
Analysts Target Price 128.5 7.1%
ValueRay Target Price 139.2 16%

AEP Fundamental Data Overview January 20, 2026

P/E Trailing = 17.5637
P/E Forward = 19.084
P/S = 3.0207
P/B = 2.1083
P/EG = 2.2035
Revenue TTM = 21.44b USD
EBIT TTM = 5.68b USD
EBITDA TTM = 9.08b USD
Long Term Debt = 44.24b USD (from longTermDebt, last quarter)
Short Term Debt = 3.15b USD (from shortTermDebt, last quarter)
Debt = 47.89b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 46.78b USD (from netDebt column, last quarter)
Enterprise Value = 110.77b USD (64.21b + Debt 47.89b - CCE 1.33b)
Interest Coverage Ratio = 2.90 (Ebit TTM 5.68b / Interest Expense TTM 1.96b)
EV/FCF = 51.15x (Enterprise Value 110.77b / FCF TTM 2.17b)
FCF Yield = 1.95% (FCF TTM 2.17b / Enterprise Value 110.77b)
FCF Margin = 10.10% (FCF TTM 2.17b / Revenue TTM 21.44b)
Net Margin = 17.08% (Net Income TTM 3.66b / Revenue TTM 21.44b)
Gross Margin = 37.10% ((Revenue TTM 21.44b - Cost of Revenue TTM 13.49b) / Revenue TTM)
Gross Margin QoQ = 47.04% (prev 34.68%)
Tobins Q-Ratio = 1.00 (Enterprise Value 110.77b / Total Assets 110.25b)
Interest Expense / Debt = 1.06% (Interest Expense 508.5m / Debt 47.89b)
Taxrate = 10.52% (117.6m / 1.12b)
NOPAT = 5.08b (EBIT 5.68b * (1 - 10.52%))
Current Ratio = 0.69 (Total Current Assets 6.86b / Total Current Liabilities 10.00b)
Debt / Equity = 1.58 (Debt 47.89b / totalStockholderEquity, last quarter 30.39b)
Debt / EBITDA = 5.15 (Net Debt 46.78b / EBITDA 9.08b)
Debt / FCF = 21.60 (Net Debt 46.78b / FCF TTM 2.17b)
Total Stockholder Equity = 28.63b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.48% (Net Income 3.66b / Total Assets 110.25b)
RoE = 12.79% (Net Income TTM 3.66b / Total Stockholder Equity 28.63b)
RoCE = 7.80% (EBIT 5.68b / Capital Employed (Equity 28.63b + L.T.Debt 44.24b))
RoIC = 6.79% (NOPAT 5.08b / Invested Capital 74.84b)
WACC = 3.93% (E(64.21b)/V(112.10b) * Re(6.16%) + D(47.89b)/V(112.10b) * Rd(1.06%) * (1-Tc(0.11)))
Discount Rate = 6.16% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 100.0 | Cagr: 1.34%
[DCF Debug] Terminal Value 81.94% ; FCFF base≈2.17b ; Y1≈1.52b ; Y5≈799.5m
Fair Price DCF = N/A (negative equity: EV 25.13b - Net Debt 46.78b = -21.66b; debt exceeds intrinsic value)
[DCF Warning] FCF declining rapidly (-34.76%), DCF may be unreliable
EPS Correlation: -17.18 | EPS CAGR: -46.98% | SUE: -4.0 | # QB: 0
Revenue Correlation: 62.96 | Revenue CAGR: 11.20% | SUE: 1.57 | # QB: 1
EPS next Quarter (2026-03-31): EPS=1.57 | Chg30d=+0.021 | Revisions Net=+2 | Analysts=9
EPS next Year (2026-12-31): EPS=6.32 | Chg30d=+0.002 | Revisions Net=+4 | Growth EPS=+6.9% | Growth Revenue=+8.6%

Additional Sources for AEP Stock

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