American Electric Valuation
| AEP Stock | EUR 95.00 0.50 0.53% |
At this time, the firm appears to be overvalued. American Electric Power shows a prevailing Real Value of €78.12 per share. The current price of the firm is €95.0. Our model approximates the value of American Electric Power from analyzing the firm fundamentals such as return on equity of 0.0985, and Profit Margin of 0.12 % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that American Electric's price fluctuation is very steady at this time. Calculation of the real value of American Electric Power is based on 3 months time horizon. Increasing American Electric's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the American stock is determined by what a typical buyer is willing to pay for full or partial control of American Electric Power. Since American Electric is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Electric's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 95.0 | Real 78.12 | Hype 95.0 | Naive 98.29 |
The real value of American Stock, also known as its intrinsic value, is the underlying worth of American Electric Power Company, which is reflected in its stock price. It is based on American Electric's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of American Electric's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of American Electric Power helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Electric more accurately as focusing exclusively on American Electric's fundamentals will not take into account other important factors: American Electric Total Value Analysis
American Electric Power is presently estimated to have takeover price of 83.75 B with market capitalization of 42.58 B, debt of 33.63 B, and cash on hands of 386.2 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the American Electric fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
83.75 B | 42.58 B | 33.63 B | 386.2 M |
American Electric Investor Information
About 78.0% of the company shares are held by institutions such as insurance companies. The book value of American Electric was presently reported as 46.5. The company last dividend was issued on the 9th of February 2023. Based on the measurements of operating efficiency obtained from American Electric's historical financial statements, American Electric Power is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.American Electric Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Electric has an asset utilization ratio of 21.01 percent. This implies that the Company is making €0.21 for each dollar of assets. An increasing asset utilization means that American Electric Power is more efficient with each dollar of assets it utilizes for everyday operations.American Electric Ownership Allocation
American Electric Power retains a total of 513.87 Million outstanding shares. The majority of American Electric Power outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in American Electric Power to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in American Electric. Please pay attention to any change in the institutional holdings of American Electric Power as this could imply that something significant has changed or is about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.American Electric Profitability Analysis
The company reported the revenue of 19.64 B. Net Income was 2.31 B with profit before overhead, payroll, taxes, and interest of 8.41 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates American Electric's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in American Electric and how it compares across the competition.
About American Electric Valuation
The stock valuation mechanism determines American Electric's current worth on a weekly basis. Our valuation model uses a comparative analysis of American Electric. We calculate exposure to American Electric's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of American Electric's related companies.American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. American Electric Power Company, Inc. was founded in 1906 and is headquartered in Columbus, Ohio. AMER EL operates under Utilities - Regulated Electric classification in Germany and is traded on Frankfurt Stock Exchange. It employs 17582 people.
8 Steps to conduct American Electric's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates American Electric's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct American Electric's valuation analysis, follow these 8 steps:- Gather financial information: Obtain American Electric's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine American Electric's revenue streams: Identify American Electric's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research American Electric's industry and market trends, including the size of the market, growth rate, and competition.
- Establish American Electric's growth potential: Evaluate American Electric's management, business model, and growth potential.
- Determine American Electric's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate American Electric's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary 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.
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