American Electric Valuation
| AEP Stock | USD 130.24 0.30 0.23% |
At this time, the firm appears to be overvalued. American Electric Power shows a prevailing Real Value of $120.63 per share. The current price of the firm is $130.24. Our model approximates the value of American Electric Power from analyzing the firm fundamentals such as return on equity of 0.12, and Profit Margin of 0.16 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting American Electric's valuation include:
Price Book 2.257 | Enterprise Value | Enterprise Value Ebitda 12.9203 | Price Sales 3.22 | Forward PE 20.7039 |
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.
American Electric's intrinsic value may or may not be the same as its current market price of 130.24, 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 130.24 | Real 120.63 | Target 131.71 | Hype 130.4 |
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, news, and other external factors that may influence American Electric's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use American Electric's intrinsic value based on its ongoing forecasts of American Electric's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American Electric's closest peers.
American Electric Cash |
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American Revenue by Product
American Electric Total Value Analysis
American Electric Power is presently forecasted to have company total value of 119.37 B with market capitalization of 70.44 B, debt of 50.24 B, and cash on hands of 724.4 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the American Electric fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
119.37 B | 70.44 B | 50.24 B | 724.4 M |
American Electric Investor Information
About 86.0% of the company shares are held by institutions such as insurance companies. The book value of American Electric was presently reported as 57.57. The company has Price/Earnings To Growth (PEG) ratio of 2.25. American Electric Power recorded earning per share (EPS) of 6.66. The entity last dividend was issued on the 10th of February 2026. The firm had 2:1 split on the 31st of October 1962. Based on the measurements of operating efficiency obtained from American Electric's historical financial statements, American Electric Power is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.14 | 0.2433 |
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| Total Cash From Operating Activities | 3.5 B | 6.9 B |
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| Operating Income | 5.6 B | 5.3 B |
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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 18.58 percent. This connotes that the Company is making $0.19 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 Profitability Analysis
Based on the measurements of profitability obtained from American Electric's financial statements, American Electric's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess American Electric's ability to earn profits and add value for shareholders.Net Income | First Reported 1985-09-30 | Previous Quarter 972 M | Current Value 582 M | Quarterly Volatility 278.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.41 | 0.3181 |
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| Net Profit Margin | 0.17 | 0.1643 |
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| Operating Profit Margin | 0.14 | 0.2433 |
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| Pretax Profit Margin | 0.1 | 0.1756 |
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| Return On Assets | 0.0287 | 0.0305 |
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| Return On Equity | 0.11 | 0.115 |
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For American Electric profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Electric Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Electric utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Electric's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Electric over time as well as its relative position and ranking within its peers.
American Electric Earnings per Share Projection vs Actual
The next projected EPS of American Electric is estimated to be 1.5025 with future projections ranging from a low of 1.41 to a high of 1.6163. American Electric's most recent 12-month trailing earnings per share (EPS TTM) is at 6.66. Please be aware that the consensus of earnings estimates for American Electric Power is based on EPS before non-recurring items and includes expenses related to employee stock options.American Electric Earnings Estimation Breakdown
The calculation of American Electric's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of American Electric is estimated to be 1.5025 with the future projection ranging from a low of 1.41 to a high of 1.6163. Please be aware that this consensus of annual earnings estimates for American Electric Power is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
1.41 Lowest | Expected EPS | 1.62 Highest |
American Electric Earnings Projection Consensus
Suppose the current estimates of American Electric's value are higher than the current market price of the American Electric stock. In this case, investors may conclude that American Electric is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and American Electric's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 23 | 93.5% | 0.0 | 1.5025 | 6.66 |
American Electric Ownership Allocation
American Electric holds a total of 540.86 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. Please note that on February 3, 2026, Representative David Taylor of US Congress acquired under $15k worth of American Electric Power's common stock.American Electric Profitability Analysis
The company reported the last year's revenue of 21.78 B. Total Income to common stockholders was 3.58 B with profit before taxes, overhead, and interest of 10.4 B.American Electric Past Distributions to stockholders
About American Electric Valuation
The stock valuation mechanism determines American Electric's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of American Electric Power based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative 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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.9 B | 4 B | |
| Pretax Profit Margin | 0.18 | 0.10 | |
| Operating Profit Margin | 0.24 | 0.14 | |
| Net Profit Margin | 0.16 | 0.17 | |
| Gross Profit Margin | 0.32 | 0.41 |
American Electric Quarterly Retained Earnings |
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A single share of American Electric represents a small ownership stake in the entity. As a stockholder of American, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
American Electric Dividends Analysis For Valuation
At this time, American Electric's Dividend Yield is relatively stable compared to the past year. As of 02/18/2026, Dividend Payout Ratio is likely to grow to 0.95, while Dividends Paid is likely to drop slightly above 1 B. . At this time, American Electric's Retained Earnings are relatively stable compared to the past year. As of 02/18/2026, Earnings Yield is likely to grow to 0.07, while Retained Earnings Total Equity is likely to drop slightly above 8.2 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 2 B | 1 B | |
| Dividend Yield | 0.03 | 0.06 | |
| Dividend Payout Ratio | 0.56 | 0.95 | |
| Dividend Paid And Capex Coverage Ratio | 3.25 | 3.41 |
There are various types of dividends American Electric can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of American shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from American Electric Power directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When American pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of American Electric by the value of the dividends paid out.
American Electric Growth Indicators
Investing in growth stocks can be very risky. If the company such as American Electric does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 520.2 M | |
| Quarterly Earnings Growth Y O Y | -0.134 | |
| Forward Price Earnings | 20.7039 |
American Electric Current Valuation Indicators
American Electric's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final American Electric's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as American Electric, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use American Electric's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes American Electric's worth.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.