American Electric Power Company

Valuation Analysis

About the Company

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. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, nuclear, natural gas, renewable, hydro, solar, wind, and other energy sources; owns, operates, maintains, and invests in transmission infrastructure; and engages in the retail supply, and wholesale energy trading and marketing businesses. It operates approximately 252,000 circuit miles of distribution lines; 38,000 circuit miles of transmission lines; and 25,000

American Electric Power Company Stock at a Glance

American Electric Power Company (AEP) is currently trading at $129.23 with a market capitalization of $70.3B. The trailing P/E ratio stands at 19.12x, with a forward P/E of 18.85x. The 52-week range spans from $100.72 to $139.44; the current price is 7.3% below the yearly high. Year-over-year revenue growth stands at +10.2%. The net profit margin stands at 16.29%.

💰 Dividend

American Electric Power Company pays an annual dividend of $3.80 per share, representing a yield of 2.94%. The payout ratio stands at 55.62%.

📊 Analyst Rating

21 analysts rate American Electric Power Company (AEP) on consensus: Buy. The average price target is $144.33, implying +11.69% from the current price. Analyst price targets range from $129.00 to $173.00.

American Electric Power Company: The Investment Case in Detail

American Electric Power Company (AEP) operates in the Utilities — specifically Utilities - Regulated Electric — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 10.2% pace year-over-year, suggesting the business model continues to find new customers and pricing power. The combination of a 47.24% gross margin and 23.74% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (5.92%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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