Latest Ratios: P/E Ratio 17.8x · EV/EBITDA 13.0x · ROE 12.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $64.4B | $60.0B | $49.0B | $42.3B | $48.8B | $44.6B | $41.4B | $46.8B | $36.9B | $36.2B | $31.0B |
| Enterprise Value | $114.4B | $110.0B | $94.6B | $85.5B | $89.8B | $80.9B | $75.4B | $77.1B | $61.9B | $58.8B | $52.7B |
| P/E Ratio → | 17.78 | 17.31 | 16.53 | 19.16 | 21.15 | 17.94 | 18.84 | 24.36 | 19.16 | 18.96 | 50.77 |
| P/S Ratio | 2.96 | 2.75 | 2.46 | 2.18 | 2.52 | 2.69 | 2.78 | 3.01 | 2.28 | 2.36 | 1.90 |
| P/B Ratio | 1.91 | 1.86 | 1.82 | 1.67 | 2.02 | 1.97 | 1.99 | 2.35 | 1.94 | 1.98 | 1.78 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 9.28 | 8.64 | 7.20 | 8.43 | 9.22 | 11.63 | 10.80 | 10.96 | 7.07 | 8.49 | 6.85 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.05 | 4.75 | 4.41 | 4.65 | 4.87 | 5.06 | 4.96 | 3.83 | 3.83 | 3.23 |
| EV / EBITDA | 13.02 | 12.51 | 11.60 | 11.69 | 13.44 | 12.82 | 12.81 | 14.11 | 12.11 | 10.78 | 9.59 |
| EV / EBIT | 21.59 | 18.78 | 20.12 | 21.29 | 23.56 | 21.84 | 22.81 | 26.53 | 20.94 | 15.86 | 39.04 |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 31.8% | 31.8% | 31.9% | 29.0% | 25.2% | 28.1% | 28.7% | 25.5% | 23.8% | 28.5% | 27.1% |
| Operating Margin | 24.3% | 24.3% | 23.9% | 21.3% | 17.6% | 19.6% | 20.0% | 17.5% | 16.8% | 21.7% | 20.9% |
| Net Profit Margin | 16.4% | 16.4% | 14.9% | 11.4% | 11.9% | 15.0% | 14.8% | 12.4% | 11.9% | 12.4% | 3.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.1% | 12.1% | 11.4% | 8.9% | 9.9% | 11.5% | 10.8% | 9.9% | 10.3% | 10.7% | 3.5% |
| ROA | 3.2% | 3.2% | 3.0% | 2.3% | 2.5% | 3.0% | 2.8% | 2.7% | 2.9% | 3.0% | 1.0% |
| ROIC | 5.1% | 5.1% | 5.1% | 4.6% | 4.1% | 4.3% | 4.3% | 4.3% | 4.8% | 6.2% | 6.6% |
| ROCE | 5.5% | 5.5% | 5.4% | 5.0% | 4.4% | 4.5% | 4.4% | 4.3% | 4.7% | 6.0% | 6.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.56 | 1.56 | 1.70 | 1.72 | 1.72 | 1.62 | 1.66 | 1.53 | 1.33 | 1.25 | 1.26 |
| Debt / EBITDA | 5.72 | 5.72 | 5.61 | 5.96 | 6.22 | 5.81 | 5.85 | 5.59 | 4.94 | 4.18 | 4.00 |
| Net Debt / Equity | — | 1.55 | 1.69 | 1.71 | 1.70 | 1.60 | 1.64 | 1.52 | 1.31 | 1.23 | 1.25 |
| Net Debt / EBITDA | 5.69 | 5.69 | 5.59 | 5.91 | 6.14 | 5.75 | 5.78 | 5.54 | 4.89 | 4.14 | 3.96 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 2.88 | 2.88 | 2.53 | 2.22 | 2.74 | 3.11 | 2.85 | 2.71 | 3.01 | 4.15 | 1.54 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.45 | 0.45 | 0.44 | 0.53 | 0.51 | 0.63 | 0.44 | 0.40 | 0.48 | 0.51 | 0.64 |
| Quick Ratio | 0.33 | 0.33 | 0.31 | 0.36 | 0.41 | 0.55 | 0.31 | 0.28 | 0.37 | 0.40 | 0.53 |
| Cash Ratio | 0.04 | 0.04 | 0.03 | 0.05 | 0.05 | 0.05 | 0.06 | 0.04 | 0.05 | 0.05 | 0.06 |
| Asset Turnover | — | 0.19 | 0.19 | 0.20 | 0.21 | 0.19 | 0.18 | 0.20 | 0.23 | 0.24 | 0.26 |
| Inventory Turnover | 9.16 | 9.16 | 7.91 | 7.32 | 10.70 | 12.08 | 8.12 | 9.90 | 13.37 | 11.53 | 12.29 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.3% | 3.3% | 3.9% | 4.2% | 3.4% | 3.4% | 3.4% | 2.9% | 3.4% | 3.3% | 3.6% |
| Payout Ratio | 56.1% | 56.1% | 64.2% | 79.7% | 71.3% | 61.1% | 64.8% | 70.3% | 65.0% | 61.6% | 182.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.6% | 5.8% | 6.1% | 5.2% | 4.7% | 5.6% | 5.3% | 4.1% | 5.2% | 5.3% | 2.0% |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.3% | 3.3% | 3.9% | 4.2% | 3.4% | 3.4% | 3.4% | 2.9% | 3.4% | 3.3% | 3.6% |
| Shares Outstanding | — | $520M | $531M | $520M | $513M | $502M | $497M | $495M | $494M | $493M | $492M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AEP stock.
American Electric Power Company, Inc.'s current P/E ratio is 17.8x. The historical average is 21.6x. This places it at the 55th percentile of its historical range.
American Electric Power Company, Inc.'s current EV/EBITDA is 13.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.3x.
American Electric Power Company, Inc.'s return on equity (ROE) is 12.1%. The historical average is 10.1%.
Based on historical data, American Electric Power Company, Inc. is trading at a P/E of 17.8x. This is at the 55th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
American Electric Power Company, Inc.'s current dividend yield is 3.26% with a payout ratio of 56.1%.
American Electric Power Company, Inc. has 31.8% gross margin and 24.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
American Electric Power Company, Inc.'s Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Regulatory ROE compression risk
Metrics are mathematically derived from official filings.
Premium Multiple Reflects Transmission Quality
AEP trades at 18.2x trailing earnings and 3.2% dividend yield, a premium to the peer median P/E of 19.2x, reflecting its FERC-regulated transmission growth, as per recent market data.
The P/E of 18.16 is slightly below the peer median of 19.2, but the forward P/E of 19.76 suggests the market expects earnings growth, likely from the $72B capital plan. The dividend yield of 3.2% is in line with peers, but below the 10-year Treasury, indicating that AEP is not being valued purely as a bond proxy. The premium to book (P/B of 1.95) versus peers like Exelon (1.58) suggests the market is crediting AEP's transmission assets and data center load growth, but the PEG of 2.13 implies that growth expectations are modest relative to the multiple.
Earned ROE Trails Authorized Levels
AEP's trailing twelve-month ROE is 9.4%, below the typical authorized ROE of 9.5-10.5%, indicating regulatory lag and cost pressures, as reported in recent financial statements.
The quarterly ROE has been volatile, ranging from 1.3% to 4.2% on a quarterly basis, but the TTM ROE of 9.4% is below the allowed returns. This gap suggests that AEP is not fully recovering its cost of capital, possibly due to rate case timing and rising interest costs. The FERC-regulated transmission segment likely earns closer to authorized levels, but state-regulated operations may be lagging. Investors should monitor upcoming rate case outcomes and FERC ROE decisions, as any reduction in allowed returns would further compress earned ROE.
Operating Margin Volatility Masks Stability
Operating margins swung from 18.3% to 47.5% over the last four quarters, averaging 24.3%, reflecting seasonal and regulatory timing, but fuel pass-throughs keep core margins stable, per SEC filings.
The wide quarterly swings in operating margin are largely due to the timing of rate case adjustments and seasonal demand, not fundamental deterioration. The TTM operating margin of 24.3% is consistent with the prior year, indicating that cost recovery mechanisms are functioning. However, the Q2 2026 margin of 47.5% is an outlier, likely due to a one-time benefit or regulatory deferral. Excluding that, margins are stable, but the high fixed-cost base means that any regulatory disallowance could have an outsized impact on profitability.
Leverage Creeps Toward Authorized Limits
Debt-to-capital rose to 0.62 in Q2 2026 from 0.60 a year earlier, with FFO interest coverage at 5.97x, indicating adequate but tightening credit metrics, as per balance sheet data.
The debt-to-capital ratio of 0.62 is at the high end of the typical utility range, and the trend is upward, reflecting the heavy capital expenditure program. FFO interest coverage of 5.97x is healthy but has been volatile, dipping to 3.45x in Q4 2025. The current ratio of 0.50 indicates tight liquidity, but utilities rely on revolving credit and commercial paper, so this is not alarming. However, with the $72B capital plan, AEP will need to issue significant debt and equity, which could pressure credit ratings if FFO/Debt falls below 15%.
Dividend Coverage Solid Despite CAPEX Strain
Dividend payout ratio averaged 72.8% in Q2 2026, with operating cash flow covering dividends 3.5x, indicating a secure dividend, though external funding is needed for CAPEX, per cash flow statements.
The dividend payout ratio of 72.8% is within the typical utility range, but it has been volatile, reaching 137.8% in Q2 2024. Operating cash flow coverage of 3.5x provides a strong margin of safety, but the negative free cash flow of -$4.6B in Q2 2026 means that dividends are being funded partly by external capital. This is common for utilities in a growth phase, but investors should monitor whether the dividend growth rate (currently around 5-6%) remains sustainable as the capital plan progresses.
Misapplied Metric: Standard Debt-to-Equity
The conventional debt-to-equity ratio of 1.56 understates AEP's true leverage because it ignores off-balance-sheet obligations like power purchase agreements and pension liabilities, as per financial disclosures.
For utilities, the standard D/E ratio is often misleading because it does not capture the full extent of fixed obligations. AEP's reported D/E of 1.56 is lower than peers like Exelon (1.76) and Duke (1.71), but this may be due to differences in accounting for regulatory assets and liabilities. A more appropriate metric is FFO to debt, which for AEP is around 5.97x, indicating adequate coverage. However, investors should also consider the $72B capital plan and potential environmental liabilities, which could increase effective leverage. Using adjusted debt metrics that include operating leases and pension obligations would provide a clearer picture of AEP's credit risk.