AEP · rate-regulated utility · book-value and yield view
American Electric Power Company, Inc. (AEP): Valuation Snapshot
American Electric Power Company, Inc. (AEP) is a rate-regulated utility, and a discounted-cash-flow model is the wrong lens for one, so TickerWorth does not publish a DCF fair value for it. What its filings and market data do show is below. Snapshot as of Oct 21, 2026.
Model by Miraaj Patel · generated from public market data · Updated Oct 21, 2026 · How these pages are made
Why is there no fair value for AEP?
This is a rate-regulated utility. Its returns are set by a regulator on an approved rate base rather than won in a market, so a free-cash-flow DCF is the wrong lens — heavy ongoing capex is the business model, not a cash-flow problem. We show the regulated-asset lenses — book value, earnings and dividend — instead.
What is AEP's TickerWorth Score?
Scores lower than most companies we compare it with
Compared with Utilities companies in US
Its strongest point: recent price trend has been strong. Its weakest: trades above our estimate of what it's worth.
- Value · 34 of 100
Cheaper than 34% of Utilities companies in US
- Price vs worth · 20 of 100
- Quality · 56 of 100
More profitable than 56% of Utilities companies in US
- Financial health · 35 of 100
Financially stronger than 35% of Utilities companies in US
- Growth · 42 of 100
Growing faster than 42% of Utilities companies in US
- Momentum · 72 of 100
Outperformed 72% of Utilities companies in US over the past year
Confidence: High confidence · Scored
Get the Undervalued Company of the Week.
- Price
- $127.22
- Market cap
- $69,
258, 231, 808 - 52-week high
- $140.58
- 52-week low
- $112.54
- Currency
- USD
- Exchange
- NasdaqGS
Snapshot of Oct 21, 2026, quote time not published · Prices are delayed.
What we can say
American Electric Power Company, Inc. (AEP) is a rate-regulated utility, and a free-cash-flow discounted-cash-flow (DCF) model is structurally the wrong lens for one. Its returns are not won in a market — a regulator sets them on an approved rate base — and the heavy, permanent capital spending that depresses its free cash flow is the business model rather than a problem with it. We have the data to print a DCF number for AEP; we don't publish one because the model's assumptions don't describe how this company actually earns. What follows is the lenses that do — descriptive, not a valuation, and not investment advice.
Read the full reasoning
On the numbers we do have, AEP trades at a recent price of $127.22, a market capitalisation of about $69,258,231,808, sitting 52% of the way up its 52-week range ($112.54–$140.58), on the NasdaqGS.
The standard alternative to a DCF is relative valuation — comparing AEP's trading multiples against a sector benchmark. Here that gives P/E of 22.0× (richer than the peer median of 20.0×); Fwd P/E of 18.5× (in line with the peer median of 17.5×); P/B of 2.2× (in line with the peer median of 2.3×); P/S of 3.0× (in line with the peer median of 3.3×); EV/EBITDA of 13.7× (in line with the peer median of 13.2×); Dividend yield of 3.0% (richer than the peer median of 3.5%). A cheaper multiple than peers can flag a discount or a market that expects weaker growth; it is a comparison, not a recommendation.
The asset, or book-value, lens is the classic tool for asset-heavy businesses and financials. AEP shows a price-to-book (P/B) of 2.16 and book value of $58.93 per share. Price-to-book compares the market price to the accounting net-asset value per share; below 1.0 can mean a discount to net assets or that the market is pricing in trouble — descriptive either way, never a buy signal on its own.
Finally, a price-based read — explicitly not a valuation. AEP is in a mixed trend, trading -9.5% from its 52-week high. Over the past year the stock is +8.3%. Moving-average trend and 52-week position describe where the stock has traded; they say nothing about what it is worth.
To be exact about what this page is not: we are not saying the numbers for AEP are unavailable. They are, and they are above. We are saying a discounted-cash-flow model is the wrong instrument for this kind of business, and publishing one anyway — because the inputs happen to exist — would be a precise answer to the wrong question. Refusing is the more useful answer, and it is the same rule we apply to every name in this category.
AEP vs peers
Sector benchmark (bellwethers, not direct competitors).
| Multiple | AEP | Peer median | Read |
|---|---|---|---|
| P/E | 22.0× | 20.0× | richer than |
| Fwd P/E | 18.5× | 17.5× | in line with |
| P/B | 2.2× | 2.3× | in line with |
| P/S | 3.0× | 3.3× | in line with |
| EV/EBITDA | 13.7× | 13.2× | in line with |
| Dividend yield | 3.0% | 3.5% | richer than |
What does American Electric Power Company, Inc. do?
What does it do?
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. It operates in the Utilities - Regulated Electric industry (Utilities sector), headquartered in United States. The company employs roughly 17,581 people.
How does it make money?
The business turns $21.7B in annual revenue into profit. Out of every $100 of sales, about $23 is left as operating profit (operating margin of 23.3%), after a 46% gross margin on the products/services it sells. After all costs, taxes and interest, 13.8% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries moderate debt (1.6× equity), may struggle to cover its short-term bills (0.5× current ratio), and is currently profitable.
Who at AEP filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Ferneau Kelly J | Executive Vice President | Shares withheld (tax) | $43,349.50 | Form 4 for Ferneau Kelly J (opens sec.gov in a new tab) | |
| Berntsen Robert | Executive Vice President | Shares withheld (tax) | $170,643.75 | Form 4 for Berntsen Robert (opens sec.gov in a new tab) | |
| Stoddard Daniel G. | Director | Grant / award | $0.00 | Form 4 for Stoddard Daniel G. (opens sec.gov in a new tab) | |
| Dixon Kate | Controller, CAO | Open-market sale | $250,000.00 | Form 4 for Dixon Kate (opens sec.gov in a new tab) | |
| Fehrman William | Director, CEO and President | Shares withheld (tax) | $806,234.56 | Form 4 for Fehrman William (opens sec.gov in a new tab) | |
| Hall Greg B | Executive Vice President | Shares withheld (tax) | $223,405.12 | Form 4 for Hall Greg B (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Companies we do put a number on
Not investment advice. TickerWorth Score is a model output.
A descriptive, available-data snapshot and relative comparison — NOT a DCF, NOT a price target, and NOT investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public market data that can be wrong, stale or incomplete.
Save this valuation
AEP goes on your watchlist, where its valuation is re-run as new filings land — so you read the current number, not the one from today.