American Electric Power (AEP) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

American Electric Power

NasdaqGS•Utilities•Utilities - Regulated Electric

$130.03-0.30(<0.01%)Market open

Market Cap

$70.96B

P/E

20.4x

P/S

3.0x

P/B

2.1x

American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, nuclear, natural gas, renewable, hydro, solar, wind, and other energy sources; owns, operates, maintains, and invests in transmission infrastructure; and engages in the retail supply, and wholesale energy trading and marketing businesses. It operates approximately 252,000 circuit miles of distribution lines; 38,000 circuit miles of transmission lines; and 25,000 MWs of regulated owned generating capacity. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.

How this company scores

GoodMetricSide Score: 63/100

Strongest: Cash & Earnings Quality (19/25); weakest: Balance Sheet & Red Flags (12/25).

Profitability17/25

Growth15/25

Balance Sheet & Red Flags12/25

Cash & Earnings Quality19/25

Strengths

Strong marginsConsistent growthImproving margins

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 20.4x5y range 14.9x – 23.4x

Currently near its 20-quarter median.

P/S · 3.0x5y range 2.0x – 3.3x

Currently near its 20-quarter median.

P/B · 2.1x5y range 1.5x – 2.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 6.7% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $70.96B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $23.61B
Q. Revenue: $6.83B
TTM EBITDA: $9.06B
TTM Op. Income: $5.53B
Q. Op. Income: $1.81B
TTM Net Income: $3.47B
Q. Net Income: $1.22B
EPS: $2.18
Shares Out.: $544.43M

$23.61B in TTM revenue grew 11.1% YoY, reaching $6.83B last quarter. TTM EBITDA of $9.06B and TTM operating income of $5.53B show growth is flowing through to the bottom line. TTM net income of $3.47B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 69.5%
EBITDA Margin: 41.5%
Op. Margin: 26.5%
Net Margin: 17.8%

Op. margin of 26.5% is up 1.2% YoY — cost efficiency is improving. Net margin at 17.8% and gross margin of 69.5% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 3 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 20.4x
P/S Ratio: 3.0x
P/B Ratio: 2.1x

At 20.4x P/E, the stock trades within typical market levels. P/S of 3.0x and P/B of 2.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 31% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $125.69B
Cash: $418.00M
Long-Term Debt: $49.86B
Book Value: $34.04B
D/E Ratio: 1.5
Debt/EBITDA: 17.6

With $125.69B in assets and $49.86B in long-term debt, D/E is 1.5and book value is $34.04B — moderate leverage. Across the last 8 quarters, debt/equity has risen for 3 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $2.35B
TTM Free Cash Flow: $3.39B
FCF Margin: 14.4%
FCF / Net Income: 1.0

TTM FCF of $3.39B on $2.35B in operating cash flow. The FCF / Net Income ratio of 1.0x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 6% — a weakening trend.