American Electric Power Co Inc (AEP) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
American Electric Power Co Inc stock (AEP) is currently trading at $128.30. American Electric Power Co Inc PE ratio is 19.26. American Electric Power Co Inc PS ratio (Price-to-Sales) is 3.19. Analyst consensus price target for AEP is $137.47. WallStSmart rates AEP as Hold.
- AEP PE ratio analysis and historical PE chart
- AEP PS ratio (Price-to-Sales) history and trend
- AEP intrinsic value — DCF, Graham Number, EPV models
- AEP stock price prediction 2025 2026 2027 2028 2029 2030
- AEP fair value vs current price
- AEP insider transactions and insider buying
- Is AEP undervalued or overvalued?
- American Electric Power Co Inc financial analysis — revenue, earnings, cash flow
- AEP Piotroski F-Score and Altman Z-Score
- AEP analyst price target and Smart Rating
American Electric Power Co Inc
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AEP Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · American Electric Power Co Inc (AEP)
AEP trades 170% above its Graham fair value of $45.29, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
American Electric Power Co Inc (AEP) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, operating margin, profit margin. Concerns around eps growth. Fundamentals are solid but monitor weak areas for improvement.
American Electric Power Co Inc (AEP) Key Strengths (4)
84.70% of shares held by major funds and institutions
Large-cap company with substantial market presence
Strong operational efficiency: $23 kept per $100 revenue
Strong profitability: $16 kept per $100 revenue
American Electric Power Co Inc (AEP) Areas to Watch (6)
Earnings declining -12.60%, profits shrinking
Paying a premium for growth, expensive relative to earnings expansion
Moderate profitability with room for improvement
Revenue is fairly priced at 3.19x sales
Fairly priced relative to book value
Solid revenue growth at 13.20% per year
American Electric Power Co Inc (AEP) Detailed Analysis Report
Overall Assessment
This company scores 60/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 4 register as strengths (avg 8.8/10) while 6 fall into concern territory (avg 4.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap, Operating Margin. Profitability is solid with Operating Margin at 22.80%, Profit Margin at 16.40%.
The Bear Case
The primary concerns are EPS Growth, PEG Ratio, Return on Equity. Some valuation metrics including PEG Ratio (2.77), Price/Sales (3.19), Price/Book (2.25) suggest expensive pricing. Growth concerns include Revenue Growth at 13.20%, EPS Growth at -12.60%, which may limit upside. Profitability pressure is visible in Return on Equity at 12.50%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 12.50% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 13.20% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Institutional Own., Market Cap) and negatives (EPS Growth, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AEP Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AEP's Price-to-Sales ratio of 3.19x trades 101% above its historical average of 1.59x (97th percentile), historically expensive. The current valuation is 3% below its historical high of 3.3x set in Mar 2026, and 331% above its historical low of 0.74x in Mar 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for American Electric Power Co Inc (AEP) · UTILITIES › UTILITIES - REGULATED ELECTRIC
The Big Picture
American Electric Power Co Inc is a mature, profitable business with steady cash generation. Revenue reached 21.9B with 13% growth year-over-year. Profit margins of 16.4% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 1250.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Free cash flow is -246M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Debt management: total debt of 50.2B is significantly higher than cash (268M). Monitor refinancing risk.
Sector dynamics: monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive moves, and regulatory changes that could impact American Electric Power Co Inc.
Bottom Line
American Electric Power Co Inc is a well-established business delivering consistent profitability with 16.4% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(67 last 3 months)
| Insider | Type | Shares |
|---|---|---|
ULRICH, PHILLIP R. Executive Vice President | Sell | -4,106 |
| Insider | Type | Shares |
|---|---|---|
FERNEAU, KELLY J Executive Vice President | Sell | -1,351 |
| Insider | Type | Shares |
|---|---|---|
FERNEAU, KELLY J Executive Vice President | Buy | +2,693 |
| Insider | Type | Shares |
|---|---|---|
ULRICH, PHILLIP R. Executive Vice President | Buy | +21,383 |
Data sourced from SEC Form 4 filings
Last updated: 8:24:21 AM
About American Electric Power Co Inc(AEP)
NASDAQ
UTILITIES
UTILITIES - REGULATED ELECTRIC
USA
American Electric Power (AEP) is a major investor-owned electric utility in the United States, delivering electricity to more than five million customers in 11 states.