# American Electric Power Company Inc. (AEP) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Utilities / Electric Utilities. Price $124.50, market value $67.8 billion.

## Valuation
- **P/E (trailing): 21.6×** (5-yr avg 16.8×, 3-yr avg 16.8×). American Electric Power Company Inc. trades at 21.6× trailing earnings, well above its own five-year average of 16.8×: investors are paying up relative to the company's past. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 18.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.94**. A PEG of 0.94 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.0×**. Each dollar of revenue is priced at 3.0×.
- **Price / book: 2.1×**. The shares trade at 2.1× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 2.2%** (5-yr avg 10.7%). Free cash flow equals 2.2% of the market value, below its five-year average of 10.7%, so the shares are pricier on cash than usual.
- **Earnings yield: 4.6%**. The inverse of the P/E: 4.6% of the price is earned each year.

## Profitability
- **Operating margin: 23.4%**. 23.4% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 17.0%**. 17.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 11.9%**. 11.9% on shareholders' equity is solid.
- **Return on invested capital: 5.3%**. Return on all capital, debt included, is 5.3%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 2.8%**. Each dollar of assets produces 2.8% of profit.

## Growth
- **Revenue growth (1 yr): 8.7%** (3-yr 3.8%/yr, 5-yr 7.8%/yr). Revenue grew 8.7% over the last year, against 7.8% a year compounded over five years.
- **EPS growth (1 yr): 19.4%** (3-yr 14.0%/yr, 5-yr 8.5%/yr). Earnings per share rose 19.4%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 1.52**. Debt is 1.52 times equity, a leveraged balance sheet, which is normal for utilities.
- **Altman Z-score: 1.22**. A Z-score of 1.22 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.05%** ($3.78 per share, trailing). American Electric Power Company Inc. yields 3.05%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 54%** (139% of free cash flow). 54% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 21**. 21 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 5.7%/yr** (1-yr 4.8%). The dividend has grown 5.7% a year over five years.

## Analyst view
- **Analyst consensus: buy** (20 analysts). 20 analysts cover American Electric Power Company Inc.; the consensus is buy, with an average price target of $144.00 (+16% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 17.3%** (YTD 9.6%, 3-mo -3.6%). The shares are up 17.3% over twelve months including dividends.
- **From 52-week high: -11.4%** (17.8% above the low). Trading 11% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): -0.03** (volatility 19%). Beta of -0.03 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AEP · Page: https://foliofundamentals.com/stocks/aep

Not investment advice.