NASDAQ
AEP
Last Price
US $125.60
KEY FIGURES
MKT CAP
$68.4B
EPS
TTM
$5.77
PEG
TTM
-
P/E
TTM
21.76x
P/S
TTM
3.03x
YIELD
3.01%
GROWTH
Revenue Y/Y
7.88%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $125.60
—
Default assumptions
EBITDA Multiple
Fair Value
Market $125.60
-83.09%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
American Electric Power Company, Inc. cash flow to debt ratio of 13.82% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
American Electric Power Company, Inc.'s free cash flow has increased -805.16% from $-966.30M last year to $6.81G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
American Electric Power Company, Inc.'s debt to equity ratio is 1.66, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
American Electric Power Company, Inc.'s debt has decreased relative to shareholder equity from 1.70 last year to 1.66 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
American Electric Power Company, Inc. has a net debt to EBITDA ratio of 5.35x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
American Electric Power Company, Inc.'s interest coverage ratio of 2.93 indicates that earnings with margin can cover interest payments on company debt
Financial risk - Profit margin growth.
American Electric Power Company, Inc.'s profit margin has decreased (-6.38%) in the last year from 14.90% to 13.95%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
American Electric Power Company, Inc.'s short-term liabilities of $13.31G exceed its short-term assets of $6.05G, signaling financial risk
Decreasing performance - ROA.
American Electric Power Company, Inc.'s return on assets of 2.58% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
American Electric Power Company, Inc.'s return on equity of 10.01%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
American Electric Power Company, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
American Electric Power Company, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
American Electric Power Company, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
American Electric Power Company, Inc. has a free cash flow yield of 9.97%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
American Electric Power Company, Inc.'s yearly earnings has increased 20.66% since last year from $2.97G to $3.58G, signaling increasing performance
Increasing performance - Healthy revenue growth.
American Electric Power Company, Inc.'s yearly revenue has increased 9.84% since last year from $19.92G to $21.88G, signaling increasing performance
Increasing performance - ROIC.
ROIC 5.12% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
American Electric Power Company, Inc.'s 3-year revenue CAGR of 4.09% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
American Electric Power Company, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
American Electric Power Company, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
American Electric Power Company, Inc. has insufficient data to evaluate this check.
Undervalued - Earnings yield.
American Electric Power Company, Inc. has an earnings yield of 4.60%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
American Electric Power Company, Inc. is overvalued relative to its fair value price of 21.24 based on EBITDA multiple model
Undervalued - EV/EBITDA.
American Electric Power Company, Inc. has an EV/EBITDA ratio of 12.67x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
American Electric Power Company, Inc. has no meaningful EPS growth rate; PEG ratio cannot be computed.
Undervalued - P/B ratio.
American Electric Power Company, Inc. has a price-to-book ratio of 2.05x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
American Electric Power Company, Inc. has a price-to-sales ratio of 3.03x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
10.01%
Return on equity
ROIC: 5.12%
Valuation History
21.6X
Price to Earnings
EV/EBITDA: 14.1X
Cash flow
Profit margin
8.50%
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
EARNINGS FV (GRAHAM)
Fair Value
Market $125.60
70.15%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.