(AEP) American Electric Power - Ratings and Ratios
Electricity, Transmission, Distribution, Generation
EPS (Earnings per Share)
Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 19.8% |
| Value at Risk 5%th | 31.5% |
| Relative Tail Risk | -3.09% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.21 |
| Alpha | 24.94 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.485 |
| Beta | 0.064 |
| Beta Downside | 0.144 |
| Drawdowns 3y | |
|---|---|
| Max DD | 25.57% |
| Mean DD | 7.60% |
| Median DD | 5.91% |
Description: AEP American Electric Power September 26, 2025
American Electric Power Company, Inc. (AEP) is a vertically integrated U.S. utility that generates, transmits, and distributes electricity to both retail and wholesale customers. Its business is organized into four segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. The firm’s generation mix includes coal, lignite, natural gas, nuclear, hydro, solar, wind, and other sources, and it also conducts wholesale energy trading.
Key operational metrics (as of the latest 10-K) show roughly 225,000 circuit miles of distribution lines serving 5.6 million customers, about 40,000 circuit miles of high-voltage transmission lines, and 23,000 MW of regulated owned generation capacity. AEP’s regulated earnings per share (EPS) have historically been insulated from commodity price swings, but its non-regulated generation and trading arms are increasingly exposed to natural-gas price volatility and the broader shift toward renewable energy-trends that are accelerating as states adopt stricter carbon-reduction targets and as the U.S. Federal Energy Regulatory Commission (FERC) moves toward more market-based pricing for transmission services.
For a deeper quantitative assessment of AEP’s valuation dynamics and how its exposure to renewable-energy policy and gas-price risk compares to peers, you may find a focused analysis on ValueRay worthwhile.
AEP Stock Overview
| Market Cap in USD | 65,024m |
| Sub-Industry | Electric Utilities |
| IPO / Inception | 1970-01-02 |
| Return 12m vs S&P 500 | 15.6% |
| Analyst Rating | 3.29 of 5 |
AEP Dividends
| Metric | Value |
|---|---|
| Dividend Yield | 3.09% |
| Yield on Cost 5y | 5.38% |
| Yield CAGR 5y | 5.89% |
| Payout Consistency | 96.5% |
| Payout Ratio | 62.2% |
AEP Growth Ratios
| Metric | Value |
|---|---|
| CAGR 3y | 12.51% |
| CAGR/Max DD Calmar Ratio | 0.49 |
| CAGR/Mean DD Pain Ratio | 1.64 |
| Current Volume | 3298.5k |
| Average Volume | 3469.3k |
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) 62.19
| 1. Piotroski 3.0pt |
| 2. FCF Yield 1.94% |
| 3. FCF Margin 10.10% |
| 4. Debt/Equity 1.58 |
| 5. Debt/Ebitda 5.15 |
| 6. ROIC - WACC (= 2.79)% |
| 7. RoE 12.79% |
| 8. Rev. Trend 55.34% |
| 9. EPS Trend 62.27% |
What is the price of AEP shares?
Over the past week, the price has changed by -0.48%, over one month by +3.42%, over three months by +7.31% and over the past year by +29.25%.
Is AEP a buy, sell or hold?
- 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 | 127.3 | 5.3% |
| Analysts Target Price | 127.3 | 5.3% |
| ValueRay Target Price | 140.2 | 16% |
AEP Fundamental Data Overview November 16, 2025
P/E Trailing = 17.7859
P/E Forward = 19.3798
P/S = 3.0589
P/B = 2.1397
P/EG = 2.2767
Beta = 0.601
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 = 111.58b USD (65.02b + Debt 47.89b - CCE 1.33b)
Interest Coverage Ratio = 2.90 (Ebit TTM 5.68b / Interest Expense TTM 1.96b)
FCF Yield = 1.94% (FCF TTM 2.17b / Enterprise Value 111.58b)
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 = 1.01 (Enterprise Value 111.58b / 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 = 3.32% (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 = 4.00% (E(65.02b)/V(112.91b) * Re(6.25%) + D(47.89b)/V(112.91b) * Rd(1.06%) * (1-Tc(0.11)))
Discount Rate = 6.25% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 100.0 | Cagr: 1.34%
[DCF Debug] Terminal Value 72.00% ; FCFE base≈2.17b ; Y1≈1.52b ; Y5≈801.5m
Fair Price DCF = 28.86 (DCF Value 15.42b / Shares Outstanding 534.1m; 5y FCF grow -34.76% → 3.0% )
EPS Correlation: 62.27 | EPS CAGR: 21.65% | SUE: -1.34 | # QB: 0
Revenue Correlation: 55.34 | Revenue CAGR: 7.33% | SUE: 1.57 | # QB: 1
Additional Sources for AEP Stock
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Fund Manager Positions: Dataroma | Stockcircle