What Is AEP Fair Value?
American Electric Power (AEP) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, American Electric Power (AEP) has a composite fair value estimate of $102.52 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $126.13, suggesting the stock is overvalued by 18.7%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$102.52
vs. current price of $126.13(-18.7%)
How Is AEP Fair Value Calculated?
Four independent models estimate what AEP is worth. Each uses different inputs and assumptions. The composite blends them by weight.
AEP Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
41% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$117.00
-7.2%Fair Value
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
AEP Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$92.01
-27.0%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
29% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$63.85
-49.4%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $126.13 is 7.2% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $2.88B | $2.72B |
| Year 2 | $3.09B | $2.76B |
| Year 3 | $3.31B | $2.80B |
| Year 4 | $3.55B | $2.84B |
| Year 5 | $3.80B | $2.88B |
| Year 6 | $4.08B | $2.92B |
| Year 7 | $4.37B | $2.96B |
| Year 8 | $4.69B | $3.01B |
| Year 9 | $5.03B | $3.05B |
| Year 10 | $5.39B | $3.09B |
| Terminal Value | $172.15B | $98.81B |
What Are AEP's Key Financial Metrics?
Earnings & Growth
Current Price
$126.13
EPS (TTM)
$5.77
Forward P/E
18.4
Profit Margin
13.8%
Cash & Balance Sheet
Free Cash Flow
-6B
EBITDA
9B
Book Value
$58.93
Total Debt
53.5B
What Do Analysts Say About AEP?
Low
$120.00
Average
$141.64
High
$173.00
Upside
+12.3%
AEP Fair Value FAQ
What is the fair value of AEP?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), AEP's estimated fair value is $102.52. The stock is currently trading at $126.13, which makes it overvalued by our analysis.
How is AEP's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is AEP overvalued or undervalued?
Based on our analysis, AEP is overvalued. The current price of $126.13 is 18.7% above our estimated fair value of $102.52.
What do Wall Street analysts say about AEP?
21 analysts cover American Electric Power with a consensus rating of "Buy." The average price target is $141.64, ranging from $120.00 to $173.00. This implies 12.3% upside from the current price.