What is American Electric Power Company, Inc. (AEP) DCF Fair Value and Intrinsic Value in 2026?

American Electric Power Company, Inc. (AEP) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is American Electric Power Company, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

American Electric Power Company, Inc. operates in the Utilities sector (Utilities - Regulated Electric) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is American Electric Power Company, Inc.'s financial health rating and Piotroski F-Score?

American Electric Power Company, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor American Electric Power Company, Inc. (AEP) for quarterly SEC filing thesis breaks?

LocalAlpha audits American Electric Power Company, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksAEP

AEP

American Electric Power CompanyUtilities / Utilities - Regulated ElectricINTACT

American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, nuclear, natural gas, renewable, hydro, solar, wind, and other energy sources; owns, operates, maintains, and invests in transmission infrastructure; and engages in the retail supply, and wholesale energy trading and marketing businesses. It operates approximately 252,000 circuit miles of distribution lines; 38,000 circuit miles of transmission lines; and 25,000 MWs of regulated owned generating capacity. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.

Share Price

$123.33

52W: $105.7 - $140.58

DCF Fair Value

$0.00

0% Premium

Thesis Hub

P/E (TTM)

21.4x

ROIC

17.5%

Operating Margin

23.3%

FCF Yield

-8.9%

Debt / Equity

1.61x

Piotroski Score

4/9

Altman Z-Score

2.18

Market Cap

$67.1B

Price vs. Intrinsic Value Corridor

Fair Value Range

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

Valuation Overlays:0 Revised Graham ($137.28) Graham Number ($87.39)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$123.33

DCF Fair Value

$0.00

-100% Premium

Starting Free Cash Flow ($M)$100M

$100M$-5,996M (Reported)$50,000M

Stage 1 Growth (Years 1-5)11.7%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$52,900M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$1.0B

PV of Terminal Value

$1.4B

Implied Enterprise Value

$2.5B

Implied Equity Value

$-50.4B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$112	$125	$139	$156	$174	$182	$190	$198	$207	$217
Present Value (PV)	$102	$105	$108	$110	$113	$108	$104	$100	$95	$92

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-41.1% Premium

$87.39

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $5.76BVPS: $58.93

Revised Graham Formula+10.2%

$137.28

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings-8.5% Yield

$-10.47 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $-5.7BYield: -8.5%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

0.0% CAGR (Next 10 Yrs)

At the current price of $123.33, the market is assuming the business will compound Free Cash Flow at 0.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil AEP with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for American Electric Power Company. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 23.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Track AEP & Set Alerts Browse S&P 500 Coverage

Frequently Asked Questions: American Electric Power Company (AEP) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for American Electric Power Company.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, American Electric Power Company has an estimated DCF intrinsic fair value of $0.00 per share compared to its current market price of $123.33. This represents an estimated 0.0% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $87.39.