Latest Ratios: P/E Ratio 11.8x · EV/EBITDA 11.3x · ROE 9.7%. (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 | $10.6B | $10.2B | $9.2B | $13.7B | $19.2B | $16.2B | $15.7B | $13.3B | $9.6B | $7.1B | $7.7B |
| Enterprise Value | $38.8B | $38.5B | $36.7B | $39.2B | $41.3B | $33.9B | $34.5B | $32.4B | $27.7B | $26.2B | $26.8B |
| P/E Ratio → | 11.75 | 11.38 | 5.45 | 55.00 | — | — | 335.71 | 44.22 | 7.99 | — | — |
| P/S Ratio | 0.86 | 0.83 | 0.75 | 1.08 | 1.52 | 1.45 | 1.62 | 1.30 | 0.90 | 0.68 | 0.75 |
| P/B Ratio | 0.88 | 0.86 | 1.19 | 2.29 | 4.27 | 3.54 | 3.33 | 2.54 | 1.72 | 1.48 | 1.35 |
| P/FCF | — | — | — | — | — | — | 18.36 | 217.60 | 43.31 | 22.91 | 14.23 |
| P/OCF | 2.45 | 2.37 | 3.33 | 4.52 | 7.08 | 8.51 | 5.70 | 5.38 | 4.10 | 2.87 | 2.66 |
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 | — | 3.14 | 2.99 | 3.09 | 3.28 | 3.05 | 3.57 | 3.18 | 2.58 | 2.49 | 2.64 |
| EV / EBITDA | 11.33 | 11.22 | 11.14 | 11.56 | 12.18 | 9.42 | 9.59 | 10.10 | 8.18 | 7.68 | 8.11 |
| EV / EBIT | 19.70 | 25.95 | 15.21 | 27.85 | 46.44 | — | 23.53 | 16.01 | 9.17 | 14.05 | 22.10 |
| EV / FCF | — | — | — | — | — | — | 40.34 | 531.43 | 124.98 | 83.86 | 49.77 |
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 | 18.1% | 18.1% | 18.9% | 19.8% | 20.2% | 24.3% | 27.9% | 23.2% | 24.0% | 23.3% | 22.9% |
| Operating Margin | 16.1% | 16.1% | 16.5% | 17.8% | 18.6% | 22.9% | 26.2% | 21.3% | 22.2% | 21.3% | 21.0% |
| Net Profit Margin | 7.8% | 7.8% | 13.7% | 1.9% | -4.3% | -3.7% | 0.4% | 3.0% | 9.3% | -5.2% | -0.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.7% | 9.7% | 24.6% | 4.6% | -12.0% | -8.9% | 0.9% | 5.6% | 19.2% | -10.4% | -0.2% |
| ROA | 1.9% | 1.9% | 3.7% | 0.6% | -1.5% | -1.2% | 0.1% | 0.9% | 3.1% | -1.6% | -0.0% |
| ROIC | 3.9% | 3.9% | 4.6% | 5.8% | 7.2% | 8.3% | 7.9% | 6.8% | 7.5% | 7.0% | 6.5% |
| ROCE | 4.8% | 4.8% | 5.5% | 6.8% | 7.8% | 8.9% | 8.8% | 7.6% | 8.7% | 7.7% | 7.0% |
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 | 2.54 | 2.54 | 3.77 | 4.49 | 5.22 | 4.09 | 4.21 | 3.86 | 3.44 | 4.12 | 3.41 |
| Debt / EBITDA | 8.85 | 8.85 | 8.81 | 7.93 | 6.92 | 5.19 | 5.53 | 6.28 | 5.69 | 5.86 | 5.88 |
| Net Debt / Equity | — | 2.37 | 3.57 | 4.25 | 4.91 | 3.89 | 3.98 | 3.66 | 3.24 | 3.92 | 3.36 |
| Net Debt / EBITDA | 8.24 | 8.24 | 8.35 | 7.51 | 6.52 | 4.93 | 5.22 | 5.96 | 5.34 | 5.58 | 5.79 |
| Debt / FCF | — | — | — | — | — | — | 21.98 | 313.84 | 81.66 | 60.95 | 35.54 |
| Interest Coverage | 1.05 | 1.05 | 1.59 | 1.08 | 0.84 | -0.29 | 1.50 | 1.98 | 3.00 | 1.71 | 1.18 |
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 | 0.77 | 0.77 | 0.80 | 0.68 | 1.18 | 1.13 | 1.01 | 1.03 | 1.14 | 1.06 | 1.22 |
| Quick Ratio | 0.69 | 0.69 | 0.73 | 0.61 | 1.01 | 1.00 | 0.92 | 0.93 | 1.01 | 0.97 | 1.10 |
| Cash Ratio | 0.26 | 0.26 | 0.19 | 0.19 | 0.32 | 0.25 | 0.27 | 0.28 | 0.34 | 0.23 | 0.40 |
| Asset Turnover | — | 0.24 | 0.26 | 0.28 | 0.33 | 0.34 | 0.28 | 0.30 | 0.33 | 0.32 | 0.28 |
| Inventory Turnover | 16.38 | 16.38 | 16.80 | 14.28 | 9.54 | 13.96 | 15.11 | 16.10 | 14.15 | 14.31 | 12.54 |
| 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 | 4.8% | 4.9% | 5.3% | 3.2% | 2.2% | 2.5% | 2.4% | 2.7% | 3.6% | 4.4% | 3.8% |
| Payout Ratio | 52.8% | 52.8% | 28.6% | 183.5% | — | — | 886.0% | 119.9% | 34.3% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.5% | 8.8% | 18.3% | 1.8% | — | — | 0.3% | 2.3% | 12.5% | — | — |
| FCF Yield | — | — | — | — | — | — | 5.4% | 0.5% | 2.3% | 4.4% | 7.0% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.0% |
| Total Shareholder Yield | 4.8% | 4.9% | 5.3% | 3.2% | 2.2% | 2.5% | 2.4% | 2.7% | 3.6% | 4.4% | 4.8% |
| Shares Outstanding | — | $712M | $713M | $712M | $668M | $666M | $668M | $667M | $665M | $660M | $660M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AES stock.
The AES Corporation's current P/E ratio is 11.8x. The historical average is 39.7x. This places it at the 20th percentile of its historical range.
The AES Corporation's current EV/EBITDA is 11.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.9x.
The AES Corporation's return on equity (ROE) is 9.7%. The historical average is 4.1%.
Based on historical data, The AES Corporation is trading at a P/E of 11.8x. This is at the 20th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The AES Corporation's current dividend yield is 4.75% with a payout ratio of 52.8%.
The AES Corporation has 18.1% gross margin and 16.1% operating margin. Operating margin between 10-20% is typical for established companies.
The AES Corporation's Debt/EBITDA ratio is 8.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
High leverage and regulatory lag
Metrics are mathematically derived from official filings.
Deep Value or Value Trap?
AES trades at 11.7x trailing earnings and 0.88x book, with a 4.8% dividend yield, according to current market data, suggesting the market discounts near-term earnings volatility and leverage risks.
The forward P/E of 6.39 implies the market expects significant earnings growth, likely from rate base expansion and cost recovery improvements. However, the low P/B of 0.88 indicates the market is skeptical about the quality of the asset base and the sustainability of returns. The dividend yield of 4.8% is attractive relative to Treasuries, but the payout ratio of 27% (based on TTM earnings) suggests room for growth, yet the low current ratio and high leverage may constrain future increases.
Earned ROE Approaching Authorized
AES's quarterly ROE improved to 4.2% in 2026Q2 from -1.4% in 2025Q2, as per reported figures, but remains well below typical authorized ROEs of 9-10%, indicating regulatory lag and earnings drag.
The trailing twelve-month ROE is approximately 4.2%, far below the authorized ROE that utilities typically receive. This gap suggests that AES is not yet earning its allowed return, possibly due to regulatory lag, construction financing costs, or under-recovered fuel costs. The improvement from negative ROE in 2025Q2 to positive in 2026Q2 is encouraging, but the absolute level remains low, implying that the market's low P/B may be justified until earned ROE closes the gap.
Margin Recovery but Fuel Pass-Through Risk
Operating margin expanded to 18.4% in 2026Q2 from 14.2% a year earlier, according to financial statements, indicating improved cost recovery, though fuel price volatility may still cause working capital swings.
The operating margin improvement suggests that AES is recovering costs more effectively, possibly through regulatory riders or higher tariffs. However, the net margin of 13.6% in 2026Q2 is volatile, swinging from -3.7% in 2025Q2 to 18.9% in 2025Q3, indicating non-operating items and mark-to-market effects. The interest coverage ratio of 1.38 in 2026Q2 is thin, suggesting that operating income is barely covering interest expenses, which could be a concern if margins deteriorate.
Leverage Elevated, Coverage Thin
Debt-to-capital stood at 0.71 in 2026Q2, down from 0.80 a year earlier, as per reported figures, but interest coverage of 1.38x remains low, indicating high leverage and limited cushion for earnings shocks.
While the debt-to-capital ratio has improved from 0.80 to 0.71, it remains high for a utility, and the absolute debt level of $32.1B is substantial. The FFO/debt ratio of 4.39% in 2026Q2 is weak, suggesting that cash flow generation is insufficient to comfortably service debt. The interest coverage of 1.38x is barely above 1x, meaning that a modest decline in operating income could jeopardize debt service. This leverage profile may limit financial flexibility and increase refinancing risk.
Dividend Covered but CAPEX Hungry
Dividend payout ratio of 27% in 2026Q2, based on reported earnings, indicates adequate coverage, but with CAPEX averaging $1.6B per quarter, internal funding is insufficient, requiring external financing.
The dividend appears safe from an earnings perspective, but the company's aggressive CAPEX program, which exceeds operating cash flow, means that dividends are funded partly by debt and equity issuance. The OCF-to-dividend coverage of 8.3x (as per prior analysis) is strong, but the negative free cash flow of -$0.6B per quarter suggests that the dividend is not fully self-funding. Investors should monitor whether the dividend growth is sustainable given the need to fund a large rate base expansion.
Misapplied P/E Ignores Earnings Volatility
Comparing AES's P/E to industrial peers is misleading because utility earnings are subject to regulatory lag and mark-to-market swings, as seen in the -1.4% ROE in 2025Q2, according to reported data.
The standard P/E ratio is often misapplied to utilities like AES because earnings can be distorted by non-cash items such as AFUDC and derivative mark-to-market. For example, the trailing P/E of 11.69 is based on volatile earnings that swung from a loss in 2025Q2 to a profit in 2025Q3. A more appropriate metric is the price-to-rate base or the ratio of market cap to regulated asset value, which better reflects the earning power of the regulated operations. Additionally, the high leverage and thin interest coverage suggest that a debt-adjusted earnings measure, such as EV/EBITDA, is more relevant for credit analysis.