AEP Relative Valuation
AEP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AEP is overvalued; if below, it's undervalued.
Historical Valuation
American Electric Power Company Inc (AEP) is now in the Overvalued zone, suggesting that its current forward PE ratio of 19.16 is considered Overvalued compared with the five-year average of 17.07. The fair price of American Electric Power Company Inc (AEP) is between 97.24 to 113.80 according to relative valuation methord. Compared to the current price of 118.65 USD , American Electric Power Company Inc is Overvalued By 4.26%.
Relative Value
Fair Zone
97.24-113.80
Current Price：118.65
4.26%
Overvalued
19.16
PE
1Y
3Y
5Y
Trailing
Forward
11.73
EV/EBITDA
American Electric Power Company Inc. (AEP) has a current EV/EBITDA of 11.73. The 5-year average EV/EBITDA is 11.68. The thresholds are as follows: Strongly Undervalued below 10.27, Undervalued between 10.27 and 10.98, Fairly Valued between 12.39 and 10.98, Overvalued between 12.39 and 13.09, and Strongly Overvalued above 13.09. The current Forward EV/EBITDA of 11.73 falls within the Historic Trend Line -Fairly Valued range.
19.23
EV/EBIT
American Electric Power Company Inc. (AEP) has a current EV/EBIT of 19.23. The 5-year average EV/EBIT is 19.94. The thresholds are as follows: Strongly Undervalued below 16.91, Undervalued between 16.91 and 18.43, Fairly Valued between 21.46 and 18.43, Overvalued between 21.46 and 22.98, and Strongly Overvalued above 22.98. The current Forward EV/EBIT of 19.23 falls within the Historic Trend Line -Fairly Valued range.
2.79
PS
American Electric Power Company Inc. (AEP) has a current PS of 2.79. The 5-year average PS is 2.48. The thresholds are as follows: Strongly Undervalued below 1.95, Undervalued between 1.95 and 2.22, Fairly Valued between 2.75 and 2.22, Overvalued between 2.75 and 3.02, and Strongly Overvalued above 3.02. The current Forward PS of 2.79 falls within the Overvalued range.
8.52
P/OCF
American Electric Power Company Inc. (AEP) has a current P/OCF of 8.52. The 5-year average P/OCF is 7.98. The thresholds are as follows: Strongly Undervalued below 6.50, Undervalued between 6.50 and 7.24, Fairly Valued between 8.71 and 7.24, Overvalued between 8.71 and 9.45, and Strongly Overvalued above 9.45. The current Forward P/OCF of 8.52 falls within the Historic Trend Line -Fairly Valued range.
-29.75
P/FCF
American Electric Power Company Inc. (AEP) has a current P/FCF of -29.75. The 5-year average P/FCF is -16.82. The thresholds are as follows: Strongly Undervalued below -247.16, Undervalued between -247.16 and -131.99, Fairly Valued between 98.35 and -131.99, Overvalued between 98.35 and 213.53, and Strongly Overvalued above 213.53. The current Forward P/FCF of -29.75 falls within the Historic Trend Line -Fairly Valued range.
American Electric Power Company Inc (AEP) has a current Price-to-Book (P/B) ratio of 2.08. Compared to its 3-year average P/B ratio of 1.90 , the current P/B ratio is approximately 9.57% higher. Relative to its 5-year average P/B ratio of 1.95, the current P/B ratio is about 6.77% higher. American Electric Power Company Inc (AEP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -4.86%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -5.21% , the current FCF yield is about -100.00% lower.
2.08
P/B
Median3y
1.90
Median5y
1.95
-6.01
FCF Yield
Median3y
-4.86
Median5y
-5.21
Competitors Valuation Multiple
The average P/S ratio for AEP's competitors is 2.78, providing a benchmark for relative valuation. American Electric Power Company Inc Corp (AEP) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 10.89%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AEP increased by 27.98% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.01 to 17.27.
The secondary factor is the Revenue Growth, contributed 10.89%to the performance.
Overall, the performance of AEP in the past 1 year is driven by P/E Change. Which is more unsustainable.
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