AEP
American Electric Power
$133.74
▲ 2.6%Updated Today 5:06 AM ET
▲ Up 26.2% over the last 12 months
Market Cap
$72.77B
P/E
19.85x
Forward P/E (est.)
15.2x
ROE
11.8%
Revenue Growth
11.4%
EPS Growth
30.6%
Profit Margin
16.7%
FCF Yield
7.8%
Debt / Equity
1.57x
ROIC
5.0%
Interest Coverage
2.94x
Current Ratio
0.53x
Dividend Yield
2.9%
Implied Growth (rev. DCF)
4.0%
Rating Score
64/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AEP's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AEP trades near $133.74, above its 50-day average ($130.89) and 200-day average ($123.12). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 69 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. AEP's is $2.52 (~1.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month AEP found buyers near $123.74 (support) and sellers near $134.05 (resistance); its 52-week range is $101.15–$139.44. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.9× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
American Electric Power (AEP) is a large-cap company in the Electric Utilities industry, part of the Utilities sector of the S&P 500, with a market value around $72.77B.
In its latest reported year it generated about $21.88B in revenue.
Our model rates AEP Favorable (64/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
6.8%
Revenue moved from $16.79B in 2021 to $21.88B in 2025, a 6.8% compound annual growth rate. The most recent year grew a steady 11.4% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
41.9%
Operating Margin
24.3%
Net Margin
16.7%
ROE
11.8%
American Electric Power keeps about 16.7% of each sales dollar as net profit, with a 41.9% gross margin and 24.3% operating margin. Return on equity is 11.8% and return on invested capital about 5.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$49.55B
Net Debt
$49.25B
Net Debt / EBITDA
9.26x
Debt / Equity
1.57x
Leverage: debt-to-equity is 1.6x, and operating profit covers interest about 2.9x, with a current ratio of 0.5x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $49.55B of total debt against $306.00M of cash.
Operating CF
$6.94B
Free Cash Flow
$3.49B
FCF Margin
16.0%
In the latest year American Electric Power produced about $6.94B of operating cash flow and $3.49B of free cash flow after capital spending. That is a free-cash-flow yield of about 7.8% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
19.85x
P/S
3.3x
P/B
2.04x
EV / EBITDA
13.86x
AEP trades at 19.8x trailing earnings (about 15.2x on estimated forward earnings), 3.3x sales, and 2.0x book value. Reverse-engineering today's price implies the market expects roughly 4.0% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How AEP stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.
In the Utilities sector (31 S&P 500 companies), AEP ranks #8 of 31 by our overall rating. It trades at roughly in line versus the sector on earnings (19.8x P/E vs. 22.2x median) with a higher return on equity (11.8% vs. 10.4%) and faster revenue growth (11.4% vs. 9.0%).
P/E vs sector
19.8x
median 22.2x
ROE vs sector
11.8%
median 10.4%
Growth vs sector
11.4%
median 9.0%
Sector rank
#8
of 31 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Utilities companies by sub-industry and size. Sector median is across all 31 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$138.21 – $230.35
vs. $133.74 today · expected CAGR 1% – 11%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $24.28B | $26.95B | $29.92B | $33.21B | $36.86B |
| Net income | $4.13B | $4.58B | $5.09B | $5.65B | $6.27B |
| EPS | $7.59 | $8.42 | $9.35 | $10.38 | $11.52 |
| Share price (low) | $91.04 | $101.06 | $112.17 | $124.51 | $138.21 |
| Share price (high) | $151.74 | $168.43 | $186.95 | $207.52 | $230.35 |
| CAGR (low–high) | -32% / 13% | -13% / 12% | -6% / 12% | -2% / 12% | 1% / 11% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for AEP:
- Revenue is growing 11.4% a year, a sign of real demand.
- High net margins (16.7%) point to pricing power or efficiency.
- Healthy free-cash-flow yield (~7.8%) funds buybacks and dividends.
- Pays a 2.9% dividend on top of any price gains.
- Our model's overall read is Favorable (64/100).
The case against AEP:
- Elevated leverage (debt/equity 1.6x) adds financial risk.
- Interest coverage is thin (2.9x), so debt costs bite.
Balance-sheet risk — debt/equity of 1.6x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: American Electric Power is a large-cap utilities business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 19.8x earnings, which our model scores Favorable (64/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
AEP — frequently asked questions
Is AEP a good stock to buy?
We don't give buy or sell advice. Our model rates American Electric Power Favorable (64/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is AEP's rating on The Stocks School?
American Electric Power currently scores 64/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does AEP's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from American Electric Power's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for AEP calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this AEP analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AEP. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.