AEP Fair Value Estimate
Estimate the fair value of American Electric Power Company Inc (AEP) using three independent valuation methods: Graham Number, earnings-based discounted value, and PEG-adjusted valuation.
What is a Fair Value Calculator?
A Fair Value Calculator estimates what a stock is truly worth using multiple independent valuation models. By comparing the calculated intrinsic value against the market price, you can identify stocks that may be undervalued or overvalued.
Graham Number
Classic formula using earnings and book value (√22.5 × EPS × BV)
Earnings-Based
Projects future EPS and discounts back to present value
PEG-Adjusted
Fair P/E based on growth rate — a PEG ratio of 1.0
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Look up a stock and click Calculate to see fair value estimates.
AEP Fair Value Estimate
This calculator estimates the intrinsic value of American Electric Power Company Inc (AEP) using three independent models. The Graham Number formula (sqrt of 22.5 times EPS times Book Value) provides a conservative ceiling price. The earnings-based model projects future EPS over 5 years and discounts them to present value. The PEG-adjusted model calculates a fair P/E ratio from the expected earnings growth rate. At the current price of $132.68, the composite estimate reveals whether AEP is trading at a discount or premium to fair value.
All three models are averaged to produce a single blended fair value. Compare this result with GoodMoat's DCF calculator and reverse DCF for a comprehensive valuation framework.