American Electric Power Company Inc (AEP) is undervalued and Dominion Energy Inc (D) is overvalued.
Against our estimates of intrinsic value, AEP trades at the wider discount: a margin of safety of +27%, against -158% for D.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $163.79; the price of $120.27 is 27% below that value, and 82% of that value comes from beyond year five.
Leak Score 61/100 on 10 of 12 signals
Discounting its cash flows at 7.4% (average of 2 methods) values the shares at $24.23; the price of $62.43 is 158% above that value.
Leak Score 27/100 on 10 of 12 signals
| Metric | AEP | D |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $120.27 | $62.43 |
| Intrinsic value | $163.79 | $24.23 |
| Margin of safety | +27% | -158% |
| Leak Score | 61/100 (10/12) | 27/100 (10/12) |
| Market cap | $65.5B | $54.9B |
| Revenue growth, 5 years | 7.9% | 3.4% |
| Operating margin | 23.3% | 27.5% |
| Net margin | 13.8% | 13.4% |
| Return on equity | 10.1% | 9.1% |
| Debt to equity | 1.67 | 1.85 |
| P/E | 20.8x | 21.7x |
| Forward P/E | 17.5x | 16.4x |
| P/B | 2.0x | 2.0x |
| Dividend yield | 3.2% | 4.3% |