American Electric Power Company, Inc. (AEP) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 state...
American Electric Power Company, Inc. (AEP) currently trades at a P/E ratio of 29.08 (historical range: 14.91–209.17, median: 23.23), placing it at the 69th percentile — above its historical average, P/S ratio of 3.04 (range: 1.92–18.30, 59th percentile — near its historical average), EV/EBITDA of 21.83 (range: 19.04–224.29, 24th percentile).
Over the historical period (2021-09-13 to 2026-10-16), American Electric Power Company, Inc.'s P/E ratio has contracted by 60% over the observed period (from an average of 56.1 to 22.3).
American Electric Power Company, Inc. trades near its historical valuation range, with most metrics close to their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 29.08 | 23.23 | 69th | above its historical average |
| P/S Ratio | 3.04 | 2.90 | 59th | near its historical average |
| EV/EBITDA | 21.83 | 23.92 | 24th | below its historical average |
| FCF Yield | 6.19% | 6.42% | 46th | near its historical average |
American Electric Power Company, Inc. (AEP) Valuation & P/E History
American Electric Power Company, Inc. (AEP) is a US-listed stock operating in the Utilities sector, specifically the Electric Services industry currently trading at $127.14 with a market capitalization of $69.2 billion. This page provides historical valuation analysis for AEP based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 29.08 is above the historical median of 23.23, placing AEP at the 69th percentile of its valuation range. The P/S ratio of 3.04 compares to a median of 2.90.
AEP Valuation Metrics & Historical Range
The valuation table above shows American Electric Power Company, Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether AEP is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests AEP is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for American Electric Power Company, Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is AEP Overvalued or Undervalued?
American Electric Power Company, Inc. trades near its historical valuation range, with most metrics close to their median levels. The overall valuation percentile of 51 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive AEP is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full AEP analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.AEP trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.