Latest Ratios: P/E Ratio 20.7x · EV/EBITDA 11.4x · 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 | $68.8B | $60.0B | $49.0B | $42.3B | $48.8B | $44.6B | $41.4B | $46.8B | $36.9B | $36.2B | $31.0B |
| Enterprise Value | $118.8B | $110.0B | $94.6B | $85.5B | $89.8B | $80.9B | $75.4B | $77.1B | $61.9B | $58.8B | $52.7B |
| P/E Ratio → | 20.74 | 17.31 | 16.53 | 19.16 | 21.15 | 17.94 | 18.84 | 24.36 | 19.16 | 18.96 | 50.77 |
| P/S Ratio | 2.95 | 2.75 | 2.46 | 2.18 | 2.52 | 2.69 | 2.78 | 3.01 | 2.28 | 2.36 | 1.90 |
| P/B Ratio | 2.04 | 1.86 | 1.82 | 1.67 | 2.02 | 1.97 | 1.99 | 2.35 | 1.94 | 1.98 | 1.78 |
| P/FCF | 11.46 | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 9.91 | 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 | 11.38 | 12.51 | 11.60 | 11.69 | 13.44 | 12.82 | 12.81 | 14.11 | 12.11 | 10.78 | 9.59 |
| EV / EBIT | 22.42 | 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 | 3.1% | 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 | 4.8% | 5.8% | 6.1% | 5.2% | 4.7% | 5.6% | 5.3% | 4.1% | 5.2% | 5.3% | 2.0% |
| FCF Yield | 8.7% | — | — | — | — | — | — | — | — | — | — |
| 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 | 3.1% | 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 20.7x. The historical average is 21.6x. This places it at the 83th percentile of its historical range.
American Electric Power Company, Inc.'s current EV/EBITDA is 11.4x. 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 20.7x. This is at the 83th 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 3.05% 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
Capex funding and leverage pressure
Metrics are mathematically derived from official filings.
Premium Multiple Prices in Load Growth
Based on AEP's reported figures, the trailing P/E of 19.03 and forward P/E of 19.67 sit above the 16.98 to 23.81 peer range midpoint, suggesting the market is pricing in data center driven rate base growth rather than a steady bond-proxy return profile.
A forward P/E above the trailing multiple implies the market expects earnings to rise, which is consistent with the reported 9.4% revenue growth. The 3.0% dividend yield is modest relative to a Treasury alternative, so the equity case appears to rest on earned return expansion instead of income. Investors should monitor whether authorized ROE outcomes support this premium.
Earned Return Lags Regulatory Ambition
As reported in the quarterly ratio data, AEP's ROE ranged from 1.3% to 4.2% over the ten quarters, well below the 8.0% to 11.7% range shown for regulated peers, which suggests a meaningful gap between earned returns and typical authorized levels.
Quarterly ROE is distorted by timing items, AFUDC, and construction-period lag, so the single-quarter figures should not be annualized mechanically. The persistent gap versus peers indicates earned returns may not yet reflect the rate base being added. Analysts should compare against the authorized ROE in each jurisdiction before drawing conclusions about regulatory outcomes.
Reported Leverage Metrics Require Verification
According to the provided data, the debt-to-capital ratio held near 0.61 to 0.63 and interest coverage improved to 3.17 in 2026Q3, though the reported debt-to-equity of 1.56 conflicts with the balance sheet figures and warrants verification.
Stable debt-to-capital alongside rising coverage suggests the company is financing growth without visible deterioration in credit metrics. The inconsistency between the stated debt-to-equity and reported debt and equity balances means leverage conclusions remain provisional. Investors should reconcile the source figures before relying on any leverage threshold.
Dividend Coverage Tightens Against Capex
Based on AEP's reported figures, the dividend payout ratio swung between 40.7% and 137.8% across the ten quarters, with the most recent quarter at 43.7%, indicating payout coverage depends heavily on which period is examined.
Payout ratios above 100% in earlier quarters reflect timing mismatches between reported earnings and cash generation rather than a sustained shortfall. Operating cash flow has covered dividends multiple times over, which suggests the dividend is serviceable. However, with capex running well above operating cash flow, the dividend competes with internal funding needs for the capital program.
Price-to-Book Misapplied to Regulated Returns
As reported in the valuation data, AEP's P/B of 2.05 is often read as a value signal, but for a regulated utility the authorized ROE relative to cost of equity, not book multiple, determines whether that premium is justified.
Comparing P/B across utilities ignores differences in authorized returns and rate base treatment, so a higher multiple may simply reflect a higher allowed ROE rather than mispricing. Using P/E without adjusting for AFUDC and regulatory asset timing can also overstate earnings power. A more appropriate lens is price relative to rate base adjusted for the spread between authorized ROE and the company's cost of capital.