AEP Fair Value Estimate
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.

American Electric Power Company Inc
American Electric Power is committed to improving our customers' lives with reliable, affordable power. We expect to invest $72 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 17,000 employees operate and maintain the nation's largest electric transmission system with approximately 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio.
Net income compounded at 10.9% annually over 6 years.
Current Price
$132.68
+0.77%GoodMoat Value
$116.34
12.3% overvaluedAmerican Electric Power (AEP) appears unfavourable from a value investing perspective based on the GoodMoat framework. The current price trades at a premium to the fair value target, offering no margin of safety, and key valuation metrics like the negative free cash flow yield are concerning.
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Graham Number, PEG-based, and Earnings-based models
View Fair Value →American Electric Power Company Inc (AEP) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for American Electric Power Company Inc is $116.34. The current stock price is $132.68, suggesting the stock is 14.0% overvalued.
The price-to-earnings (P/E) ratio is 19.84. Price-to-sales ratio is 3.25. Enterprise value to EBITDA is 7.74. PEG ratio is -1.55.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of American Electric Power Company Inc's intrinsic value.