What Is AEP Fair Value?
American Electric Power (AEP) fair value estimate using multiple valuation models, updated daily.
As of August 30, 2026, American Electric Power (AEP) has a composite fair value estimate of $100.12 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $122.31, suggesting the stock is overvalued by 18.1%.
Data as of August 30, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$100.12
vs. current price of $122.31(-18.1%)
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)
35% 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 →
$110.04
-10.0%Fair Value
Inputs used
DDM (Dividend Discount Model)
15% 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 →
$105.91
-13.4%Fair Value
Inputs used
AEP Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% 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 →
$91.94
-24.8%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% 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.
$63.76
-47.9%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 $122.31 is 10.0% 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 | $3.08B | $2.75B |
| Year 3 | $3.30B | $2.79B |
| Year 4 | $3.54B | $2.82B |
| Year 5 | $3.79B | $2.86B |
| Year 6 | $4.06B | $2.90B |
| Year 7 | $4.35B | $2.93B |
| Year 8 | $4.66B | $2.97B |
| Year 9 | $5.00B | $3.01B |
| Year 10 | $5.35B | $3.05B |
| Terminal Value | $166.25B | $94.60B |
What Are AEP's Key Financial Metrics?
Earnings & Growth
Current Price
$122.31
EPS (TTM)
$5.77
Forward P/E
17.8
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
$129.00
Average
$144.00
High
$173.00
Upside
+17.7%
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 $100.12. The stock is currently trading at $122.31, 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 $122.31 is 18.1% above our estimated fair value of $100.12.
What do Wall Street analysts say about AEP?
20 analysts cover American Electric Power with a consensus rating of "Buy." The average price target is $144.00, ranging from $129.00 to $173.00. This implies 17.7% upside from the current price.