American Electric Power Stock Alpha and Beta Analysis
| AEP Stock | USD 98.03 0.02 0.02% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as American Electric Power. It also helps investors analyze the systematic and unsystematic risks associated with investing in American Electric over a specified time horizon. Remember, high American Electric's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to American Electric's market risk premium analysis include:
Beta 0.4 | Alpha (0.04) | Risk 1.35 | Sharpe Ratio 0.0141 | Expected Return 0.019 |
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
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American Electric Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. American Electric market risk premium is the additional return an investor will receive from holding American Electric long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in American Electric. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate American Electric's performance over market.| α | -0.04 | β | 0.40 |
American Electric expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of American Electric's Buy-and-hold return. Our buy-and-hold chart shows how American Electric performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.American Electric Market Price Analysis
Market price analysis indicators help investors to evaluate how American Electric stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading American Electric shares will generate the highest return on investment. By understating and applying American Electric stock market price indicators, traders can identify American Electric position entry and exit signals to maximize returns.
American Electric Return and Market Media
The median price of American Electric for the period between Sat, Nov 2, 2024 and Fri, Jan 31, 2025 is 96.31 with a coefficient of variation of 2.92. The daily time series for the period is distributed with a sample standard deviation of 2.79, arithmetic mean of 95.52, and mean deviation of 2.38. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Investment Analysts Price Target Changes for November 26th | 11/26/2024 |
| American Electric dividend paid on 10th of December 2024 | 12/10/2024 |
2 | Bloom Energy Corporation Receives Price Target Increase to 20 from BofA Despite Execution Risks and Flat Revenue | 12/11/2024 |
3 | Acquisition by Sandra Lin of 460 shares of American Electric subject to Rule 16b-3 | 12/31/2024 |
4 | Acquisition by Stoddard Daniel G. of tradable shares of American Electric subject to Rule 16b-3 | 01/02/2025 |
5 | American Electric Power Sells 19.9 percent Stake In Two Transmission Assets For 2.82B Details | 01/10/2025 |
6 | American Electric Power raised to Buy at BofA as asset sale leaves manageable equity | 01/13/2025 |
7 | American Electric Power Stock Sees RS Rating Improve To 72 | 01/14/2025 |
8 | American Electric Power Company Settles SEC Investigation with 19 Million Penalty | 01/17/2025 |
9 | Energy Consumption to Soar 3 Stocks to Power your Portfolio | 01/21/2025 |
10 | Acquisition by Von Thaer Lewis of 484 shares of American Electric subject to Rule 16b-3 | 01/22/2025 |
11 | Insider Trading | 01/27/2025 |
About American Electric Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including American or other stocks. Alpha measures the amount that position in American Electric Power has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2022 | 2023 | 2024 | 2025 (projected) | Dividend Yield | 0.0339 | 0.0418 | 0.048 | 0.0496 | Price To Sales Ratio | 2.47 | 2.22 | 2.0 | 1.16 |
American Electric Upcoming Company Events
As portrayed in its financial statements, the presentation of American Electric's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, American Electric's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of American Electric's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of American Electric. Please utilize our Beneish M Score to check the likelihood of American Electric's management manipulating its earnings.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Build Portfolio with American Electric
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Additional Tools for American Stock Analysis
When running American Electric's price analysis, check to measure American Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Electric is operating at the current time. Most of American Electric's value examination focuses on studying past and present price action to predict the probability of American Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Electric's price. Additionally, you may evaluate how the addition of American Electric to your portfolios can decrease your overall portfolio volatility.