American Electric Power Company Inc (AEP)

NASD · Utilities · Utilities - Regulated Electric · USA

American Electric Power Company Inc is a large cap company (market value between $10 billion and $200 billion) in the Utilities - Regulated Electric industry.

American Electric Power is a public utility holding company that owns subsidiaries providing generation, transmission and distribution services across a multi-state region in the central and eastern United States. Its utilities serve retail customers and supply electricity to wholesale markets through vertically integrated operations, transmission networks and distribution facilities.

From its FY2025 annual report (Form 10-K)

Intrinsic value, DCF valuation, financial health and value investing analysis for the American Electric Power Company Inc stock.

Our verdict on AEP

Undervalued: intrinsic value $163.38 per share, market price $124.72, margin of safety 23.7% (as of 2026-10-19).

Discounting its cash flows at 7.4% (average of 3 methods) values the shares at $163.38; the price of $124.72 is 24% below that value, and 82% of that value comes from beyond year five.

Leak Score: 63/100 on 11 of 12 signals (Faint Leak).

ETFs with the most weight in AEP

17 more funds hold it; the full list is part of the paid plan.

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Cheaper than AEP in Utilities - Regulated Electric

3 more in this industry show a wider margin of safety.

Is AEP undervalued or overvalued?

AEP is undervalued (as of the 2026-10-19 close). Discounting its cash flows at 7.4% (average of 3 methods) values the shares at $163.38; the price of $124.72 is 24% below that value, and 82% of that value comes from beyond year five.

What is the intrinsic value of AEP?

$163.38 per share (as of the 2026-10-19 close), against a market price of $124.72. That is a margin of safety of 23.7%. The value is the average of the valuation methods that apply to this company, recomputed every night after the US close.

What growth is priced into AEP stock?

The price asks for less growth than the company has already delivered. Repeating its past would be enough. Yearly sales growth the price needs: 3.9%. Yearly sales growth it has sustained: 10.9%.

What is American Electric Power Company Inc's Leak Score?

63 out of 100, which we rate "Faint Leak", on 11 of 12 value investing signals.