Utilities · Electric Utilities · US stock · price as of 16 Oct 2026
Key indicators
Price
$127.14
52-week range
$110.01 – $139.52
Market cap
$69.6B
P/E (trailing)
18.1×
EV / EBITDA
22.4×
Free-cash-flow yield
3.7%
Dividend yield
3.0%
Revenue (last 12 months)
$22.4B
Revenue growth (3y a year)
3.7%
Operating margin
24.0%
Return on invested capital
5.8%
Net debt / EBITDA
9.5×
Fair value
Blended fair value$152.33 range $136 – $172
Versus priceFair+20% to fair value
Peer multiples
$148.71
Fundamentals-adjusted multiple
$147.89
10-year DCF (market-scaled)
$160.39
Earnings power value (floor, not blended)
$28.34
Model uncertainty
Medium
X-Ray Score
63/ 100 · Medium confidence · ahead of 77% of sector peers
Valuation74
Growth65
Profitability62
Financial health51
Dividends58
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
American Electric Power is a large regulated electric utility holding company that generates, transmits and distributes electricity to customers in many states across the central and eastern United States. It owns one of the biggest transmission networks in the country. Revenue comes mainly from rates approved by state and federal regulators, which are intended to recover costs and provide an allowed return on the utility assets it builds.
Revenue of $22.4 billion was recorded for the latest twelve months; sales expanded at 3.7% a year across three years. American Electric Power Co Inc converts that into an operating margin of 24.0%. Return on invested capital comes to 6%. Leverage, measured as net debt to EBITDA, is 9.5 times.
StocksXray gives American Electric Power Co Inc an X-Ray Score of 63 out of 100 (medium confidence), ahead of 77% of the S&P 500 stocks in its sector. Its strongest lens is valuation (74) and its weakest is financial health (51).
Our fair value blend is $152.33 (range $135.96 to $172.32). At $127.14 the stock trades 17% below that blend, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
American Electric Power Co Inc (AEP)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$75.02
$82.81
$73.72
$87.12
$112.72
$127.14
Market cap
$37.6B
$42.5B
$38.3B
$46.3B
$60.6B
$69.6B
P/E
15.1×
18.4×
17.4×
15.6×
16.9×
18.1×
EV / revenue
4.5×
4.4×
4.3×
4.6×
5.1×
5.4×
EV / EBITDA
22.2×
13.1×
12.8×
12.4×
12.8×
22.6×
Price / free cash flow
9.8×
8.0×
7.9×
7.2×
17.4×
26.8×
Free-cash-flow yield
10.2%
12.4%
12.7%
13.8%
5.8%
3.7%
Price / book
1.7×
1.8×
1.5×
1.7×
1.9×
2.2×
Dividend yield
4.00%
3.83%
4.57%
4.10%
3.32%
2.99%
Fundamentals checklist ● 6 Good · ● 6 Average · ● 2 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−2.7%Average
Free-cash-flow yield3.7%Good
Risk models
Altman Z score0.8×Average
Piotroski F-Score7 of 9Good
Growth
EPS growth (3y)14.0%Good
Revenue growth (3y)3.7%Average
Growth consistency90%Good
Balance sheet
Current ratio0.5×Bad
Net debt / EBITDA9.5×Bad
Interest cover2.6×Average
Valuation
Fair value vs price1.2×Good
EBIT / EV yield4.4%Average
Profitability
Return on invested capital5.8%Good
Operating margin24.0%Average
XStocksXray
American Electric Power Co Inc (AEP)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
16,792
19,640
19,456
19,970
21,876
22,433
Gross profit
–
–
–
–
–
–
Operating income
3,411
3,483
3,556
4,304
5,319
5,395
Net income
2,488
2,306
2,213
2,976
3,696
3,797
Diluted EPS ($)
4.96
4.49
4.24
5.58
6.66
7.03
Free cash flow
3,840
5,288
4,857
6,405
3,491
2,595
Gross margin
–
–
–
–
–
–
Operating margin
20.3%
17.7%
18.3%
21.6%
24.3%
24.0%
Net margin
14.8%
11.7%
11.4%
14.9%
16.9%
16.9%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
87,669
93,403
96,684
103,078
114,460
117,776
Cash
403
509
330
203
197
306
Total debt
38,536
43,775
44,911
46,785
49,435
51,760
Equity
22,433
23,893
25,247
26,944
31,138
31,808
Dividend per share ($)
3.00
3.17
3.37
3.57
3.74
–
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.