NASDAQ · AEP

American Electric Power Company, Inc.

Utilities · Regulated Electric

$121.62▲ 0.77% ($0.93)at close

After hours$121.06▼ 0.46%7:48 PM ET

52-week

$105.70$140.58

Market cap

$66.21B

P/E

21.32

EPS (TTM)

$5.70

Next earnings

Oct 29, 2026

What the market price implies · Reverse DCF

To support a price of $121.62, this model requires revenue to grow by 1.68%/yr over the next 10 years, compounded annually.

Historical revenue grew by 6.99%/yr over the past 4 years. The required annual growth rate is 5.31 percentage points lower.

Selected forecast · Base scenario

3.57%/yr · actual 10-year annualized revenue growth

Year 1 growth: 5.59%

Market-implied · Base operating assumptions + edited margins

1.68%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$121.62

Estimated value / share

$160.14

Base scenario

This estimate is 31.67% above the price used.

USD · TTM ending 2026-06-30

Year 1 growth 5.59% · Ending margin 30% · Discount rate 5.93%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 17, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 18, 2026, 2:31 AM UTC · provider

Why this method?

There is not a stable run of positive FCFF to anchor a direct cash-flow CAGR, so the model should start from revenue and margin assumptions instead.

Is FCFF positive and has it been for 3+ consecutive years? Only 1 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inHigh confidence

1Y Price: 13.11%Revenue (TTM): 7.66%FCF (TTM): 317.99%P/E: 73rd pct

What changed

The stock rose 13.11% over the last year. Revenue grew 7.66% over the trailing twelve months. Operating margin moved from 25.69% to 28.36%. Free cash flow grew 317.99% over the trailing twelve months.

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/E range (73rd percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Operating margin is at 28.36% — continued expansion would be needed to justify the premium. Revenue growth of 7.66% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.

Performance

Return analysis

Company profile

American Electric Power Company, Inc. (AEP) operates as a prominent electric utility holding company, with its core business encompassing the generation, transmission, and delivery of electricity.

CEOWilliam J. Fehrman

SectorUtilities

IndustryRegulated Electric

Employees17,581

IPO dateJan 2, 1962

https://www.aep.com

Market multiples

Forward P/E—

EV/EBITDA11.75

Enterprise value$109.81B

Stock splits

Oct 31, 1962↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth7.02%

Gross margin (FY2025)31.81%▼0.1ppvs FY2024

Operating margin (FY2025)24.33%▲0.4ppvs FY2024

ROE10.13%▼2.2ppvs FY2025

Analyst consensus

RatingBuy

Target price$140.38▲15.43%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Oct 29, 2026

Q4 FY26 · EPS est $1.98 · Revenue est $6.45B

View

Dividends

$3.80/shareQuarterlyDividend Achiever · 22yrAdequate

AEP pays a dividend with a 3.12% dividend yield, 22 consecutive years of growth, growing at 5.12% annually, covered 3.4× by free cash flow.

Dividend Yield

3.12%

Annual Div / Share

$3.80

5yr CAGR

+5.12%

Doubles every ~13.9yr

Payout Ratio

65.15%

Adequate

Dividend Growth Rate

3yr CAGR

+4.6%

5yr CAGR

+5.12%

10yr CAGR

+5.43%

Dividend Safety

7/10Adequate

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$3.80+2.2%

2025$3.72+5.7%

2024$3.52+6.0%

2023$3.32+6.4%

2022$3.12+5.4%

2021$2.96+5.7%

2020$2.80+4.5%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$31/yr

$3/mo

In 5 yrs

$40/yr+28%

$3/mo

In 10 yrs

$51/yr+65%

$4/mo

Today	In 5 yrs	In 10 yrs
$31/yr $3/mo	$40/yr+28% $3/mo	$51/yr+65% $4/mo

Yield-on-cost grows from 3.12% → 5.15% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

AEP has raised its dividend for 22 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 3.4× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 5.12% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.

NASDAQ · AEP

American Electric Power Company, Inc.

Utilities · Regulated Electric

$121.62▲ 0.77% ($0.93)at close

After hours$121.06▼ 0.46%7:48 PM ET

52-week

$105.70$140.58

Market cap

$66.21B

P/E

21.32

EPS (TTM)

$5.70

Next earnings

Oct 29, 2026

What the market price implies · Reverse DCF

To support a price of $121.62, this model requires revenue to grow by 1.68%/yr over the next 10 years, compounded annually.

Historical revenue grew by 6.99%/yr over the past 4 years. The required annual growth rate is 5.31 percentage points lower.

Selected forecast · Base scenario

3.57%/yr · actual 10-year annualized revenue growth

Year 1 growth: 5.59%

Market-implied · Base operating assumptions + edited margins

1.68%/yr · flat 10-year annualized revenue growth

Valuation

Recommended · Revenue & margin DCF

Price used

$121.62

Estimated value / share

$160.14

Base scenario

This estimate is 31.67% above the price used.

USD · TTM ending 2026-06-30

Year 1 growth 5.59% · Ending margin 30% · Discount rate 5.93%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 17, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 18, 2026, 2:31 AM UTC · provider

Why this method?

There is not a stable run of positive FCFF to anchor a direct cash-flow CAGR, so the model should start from revenue and margin assumptions instead.

Is FCFF positive and has it been for 3+ consecutive years? Only 1 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inHigh confidence

1Y Price: 13.11%Revenue (TTM): 7.66%FCF (TTM): 317.99%P/E: 73rd pct

What changed

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/E range (73rd percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Performance

Return analysis

Company profile

American Electric Power Company, Inc. (AEP) operates as a prominent electric utility holding company, with its core business encompassing the generation, transmission, and delivery of electricity.

CEOWilliam J. Fehrman

SectorUtilities

IndustryRegulated Electric

Employees17,581

IPO dateJan 2, 1962

https://www.aep.com

Market multiples

Forward P/E—

EV/EBITDA11.75

Enterprise value$109.81B

Stock splits

Oct 31, 1962↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth7.02%

Gross margin (FY2025)31.81%▼0.1ppvs FY2024

Operating margin (FY2025)24.33%▲0.4ppvs FY2024

ROE10.13%▼2.2ppvs FY2025

Analyst consensus

RatingBuy

Target price$140.38▲15.43%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Oct 29, 2026

Q4 FY26 · EPS est $1.98 · Revenue est $6.45B

View

Dividends

$3.80/shareQuarterlyDividend Achiever · 22yrAdequate

AEP pays a dividend with a 3.12% dividend yield, 22 consecutive years of growth, growing at 5.12% annually, covered 3.4× by free cash flow.

Dividend Yield

3.12%

Annual Div / Share

$3.80

5yr CAGR

+5.12%

Doubles every ~13.9yr

Payout Ratio

65.15%

Adequate

Dividend Growth Rate

3yr CAGR

+4.6%

5yr CAGR

+5.12%

10yr CAGR

+5.43%

Dividend Safety

7/10Adequate

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$3.80+2.2%

2025$3.72+5.7%

2024$3.52+6.0%

2023$3.32+6.4%

2022$3.12+5.4%

2021$2.96+5.7%

2020$2.80+4.5%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$31/yr

$3/mo

In 5 yrs

$40/yr+28%

$3/mo

In 10 yrs

$51/yr+65%

$4/mo

Today	In 5 yrs	In 10 yrs
$31/yr $3/mo	$40/yr+28% $3/mo	$51/yr+65% $4/mo

Yield-on-cost grows from 3.12% → 5.15% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

AEP has raised its dividend for 22 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 3.4× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 5.12% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.