American Electric Power Company, Inc. (AEP) Financial Ratios
30 years of historical data (1996–2025) · Utilities · Regulated Electric
EV/EBITDA
↓
13.59
+10% vs avg
5yr avg: 12.41
30Y Low5.3·High14.1
P/FCF
N/A
—
5yr avg: N/A
30Y Low11.7·High130.8
P/B Ratio
↓
2.06
+10% vs avg
5yr avg: 1.87
30Y Low1.2·High2.4
ROE
↑
12.1%
↓+13% vs avg
5yr avg: 10.7%
30Y Low-6%·High20%
Debt/EBITDA
↓
5.72
↓-2% vs avg
5yr avg: 5.86
30Y Low2.4·High6.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
AEP Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
American Electric Power Company, Inc. trades at 19.2x earnings, roughly in line with its 5-year average of 18.4x, sitting at the 83rd percentile of its historical range. This is roughly in line with the Utilities sector median P/E of 19.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $69.5B | $60.0B | $49.0B | $42.3B | $48.8B | $44.6B | $41.4B | $46.8B | $36.9B | $36.2B | $31.0B |
| Enterprise Value | $119.4B | $110.0B | $94.6B | $85.5B | $89.8B | $80.9B | $75.4B | $77.1B | $61.9B | $58.8B | $52.7B |
| P/E Ratio → | 19.17 | 17.31 | 16.53 | 19.16 | 21.15 | 17.94 | 18.84 | 24.36 | 19.16 | 18.96 | 50.77 |
| P/S Ratio | 3.19 | 2.75 | 2.46 | 2.18 | 2.52 | 2.69 | 2.78 | 3.01 | 2.28 | 2.36 | 1.90 |
| P/B Ratio | 2.06 | 1.86 | 1.82 | 1.67 | 2.02 | 1.97 | 1.99 | 2.35 | 1.94 | 1.98 | 1.78 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 10.01 | 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
AEP EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
American Electric Power Company, Inc.'s enterprise value stands at 13.6x EBITDA, 10% above its 5-year average of 12.4x. The Utilities sector median is 11.9x, placing the stock at a 14% premium on an enterprise-value basis.
| 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 | 13.59 | 12.51 | 11.60 | 11.69 | 13.44 | 12.82 | 12.81 | 14.11 | 12.11 | 10.78 | 9.59 |
| EV / EBIT | 22.54 | 20.75 | 20.12 | 21.29 | 23.56 | 21.84 | 22.81 | 26.53 | 20.94 | 15.86 | 39.04 |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
AEP Profitability
Margins and return-on-capital ratios measuring operating efficiency
American Electric Power Company, Inc. earns an operating margin of 24.3%, above the Utilities sector average of 18.5%. Operating margins have expanded from 21.3% to 24.3% over the past 3 years, signaling improving operational efficiency. ROE of 12.1% is modest. ROIC of 5.1% represents adequate returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
AEP Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
American Electric Power Company, Inc. carries a Debt/EBITDA ratio of 5.7x, which is highly leveraged (10% above the sector average of 5.2x). Net debt stands at $50.0B ($50.2B total debt minus $268M cash). Interest coverage of just 2.6x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| 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 | 2.61 | 2.61 | 2.53 | 2.22 | 2.74 | 3.11 | 2.85 | 2.71 | 3.01 | 4.15 | 1.54 |
AEP Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.45x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 0.53x to 0.45x over the past 3 years.
| 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 | — | — | — | — | — | — | — | — | — | — | — |
AEP Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
American Electric Power Company, Inc. returns 3.0% to shareholders annually primarily through dividends. A payout ratio of 56.1% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 5.2% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 3.0% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.2% | 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 | 3.0% | 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 |
Peer Comparison
Compare AEP with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 AEPYou | $69B | 19.2 | 13.6 | — | 31.8% | 24.3% | 12.1% | 5.1% | 5.7 |
 EXC | $47B | 16.7 | 11.0 | — | 27.9% | 21.2% | 9.9% | 5.1% | 5.8 |
 DUK | $97B | 19.6 | 12.6 | — | 31.6% | 26.6% | 9.5% | 4.6% | 6.1 |
 SO | $105B | 23.7 | 12.7 | — | 29.8% | 24.6% | 11.5% | 5.3% | 4.9 |
 D | $60B | 19.8 | 16.0 | — | 49.0% | 26.7% | 9.4% | 4.3% | 7.2 |
 PCG | $36B | 14.0 | 9.8 | — | 19.6% | 19.6% | 8.6% | 4.0% | 6.2 |
 ED | $39B | 18.9 | 12.6 | 1088.8 | 62.0% | 17.3% | 8.8% | 4.4% | 5.5 |
 XEL | $48B | 22.6 | 14.2 | — | 24.3% | 19.6% | 9.4% | 4.0% | 6.0 |
 ETR | $51B | 28.4 | 14.6 | — | 29.9% | 23.6% | 10.9% | 5.0% | 5.5 |
 PPL | $27B | 22.1 | 12.7 | — | 39.1% | 23.6% | 8.2% | 5.0% | 5.5 |
 EIX | $28B | 6.2 | 7.1 | — | 57.8% | 36.7% | 24.6% | 9.1% | 4.3 |
| Utilities Median | — | 19.0 | 11.9 | 18.6 | 38.4% | 18.5% | 9.3% | 4.9% | 5.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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AEP — Frequently Asked Questions
Quick answers to the most common questions about buying AEP stock.
What is American Electric Power Company, Inc.'s P/E ratio?
American Electric Power Company, Inc.'s current P/E ratio is 19.2x. The historical average is 21.6x. This places it at the 83th percentile of its historical range.
What is American Electric Power Company, Inc.'s EV/EBITDA?
American Electric Power Company, Inc.'s current EV/EBITDA is 13.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.3x.
What is American Electric Power Company, Inc.'s ROE?
American Electric Power Company, Inc.'s return on equity (ROE) is 12.1%. The historical average is 10.1%.
Is AEP stock overvalued?
Based on historical data, American Electric Power Company, Inc. is trading at a P/E of 19.2x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is American Electric Power Company, Inc.'s dividend yield?
American Electric Power Company, Inc.'s current dividend yield is 3.02% with a payout ratio of 56.1%.
What are American Electric Power Company, Inc.'s profit margins?
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.
How much debt does American Electric Power Company, Inc. have?
American Electric Power Company, Inc.'s Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.