Latest Ratios: P/E Ratio 20.4x · EV/EBITDA 14.1x · ROE 12.1%. (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 | $74.0B | $60.0B | $49.0B | $42.3B | $48.8B | $44.6B | $41.4B | $46.8B | $36.9B | $36.2B | $31.0B |
| Enterprise Value | $124.0B | $110.0B | $94.6B | $85.5B | $89.8B | $80.9B | $75.4B | $77.1B | $61.9B | $58.8B | $52.7B |
| P/E Ratio → | 20.42 | 17.31 | 16.53 | 19.16 | 21.15 | 17.94 | 18.84 | 24.36 | 19.16 | 18.96 | 50.77 |
| P/S Ratio | 3.40 | 2.75 | 2.46 | 2.18 | 2.52 | 2.69 | 2.78 | 3.01 | 2.28 | 2.36 | 1.90 |
| P/B Ratio | 2.20 | 1.86 | 1.82 | 1.67 | 2.02 | 1.97 | 1.99 | 2.35 | 1.94 | 1.98 | 1.78 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 10.65 | 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
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 | — | 5.05 | 4.75 | 4.41 | 4.65 | 4.87 | 5.06 | 4.96 | 3.83 | 3.83 | 3.23 |
| EV / EBITDA | 14.11 | 12.51 | 11.60 | 11.69 | 13.44 | 12.82 | 12.81 | 14.11 | 12.11 | 10.78 | 9.59 |
| EV / EBIT | 23.39 | 20.75 | 20.12 | 21.29 | 23.56 | 21.84 | 22.81 | 26.53 | 20.94 | 15.86 | 39.04 |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
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 | 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% |
| 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% |
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 | 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 |
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 | 0.45 | 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 | — | — | — | — | — | — | — | — | — | — | — |
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 | 2.8% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.9% | 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 | 2.8% | 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 |
Regulatory lag and CAPEX
According to current market data, AEP trades at a forward P/E of 21.84, suggesting that investors are pricing the stock as a steady-state regulated utility rather than a high-growth entity, despite the company's aggressive transmission-focused capital expenditure pipeline and significant data center-driven load growth potential.
The current valuation multiple appears to reflect a premium for the stability of FERC-regulated transmission assets, which are generally viewed as lower risk than retail distribution. However, the forward P/E of 21.84 warrants caution, as it implies that any regulatory friction in rate cases could lead to multiple compression if earnings growth fails to meet market expectations.
Based on quarterly financial data, AEP's reported ROE has fluctuated between 1.3% and 4.2% over the last ten quarters, indicating that the company frequently experiences significant regulatory lag where capital investments are made well in advance of the corresponding rate recovery mechanisms being fully implemented by state commissions.
The wide variance in earned ROE suggests that headline profitability is highly sensitive to the timing of rate case outcomes and the recognition of regulatory assets. Investors should monitor whether the company can narrow this gap through more efficient regulatory filings, as persistent under-earning relative to authorized levels may signal structural inefficiencies in cost recovery.
As reported in recent financial statements, AEP maintains a debt-to-capital ratio of approximately 0.61, a level that reflects the heavy reliance on debt financing required to fund the company's massive, multi-year infrastructure modernization program across its diverse 11-state regulated service territory footprint.
While this leverage level is consistent with the capital-intensive nature of regulated utilities, the interest coverage ratio of 2.21x in 2026Q1 suggests that the margin for error is narrowing. The company's ability to maintain its credit profile will depend heavily on its success in securing timely rate increases to offset the rising cost of debt.
Based on the provided quarterly figures, AEP's dividend payout ratio has shown extreme volatility, reaching as high as 138.8% in 2023Q4, which highlights the tension between maintaining a consistent shareholder return and funding the substantial capital expenditure requirements necessary to support long-term rate base growth.
The inconsistent payout ratio suggests that dividend coverage is frequently pressured by the timing of large-scale infrastructure projects and the associated cash outflows. While the dividend remains a primary return driver for investors, the reliance on external financing to bridge the funding gap warrants ongoing scrutiny regarding the long-term sustainability of the current payout policy.
The most commonly misapplied ratio for AEP is the standard P/E multiple, which fails to account for the non-cash nature of AFUDC and the distortive impact of regulatory asset accounting on reported net income, often leading to an inaccurate assessment of the company's true earnings power.
Analysts should instead focus on the relationship between rate base growth and authorized ROE, as these are the true drivers of utility value. Using a standard P/E comparison against non-regulated industrials obscures the fact that AEP's earnings are fundamentally capped and dictated by regulatory compacts rather than competitive market share expansion.
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Quick answers to the most common questions about buying AEP stock.
American Electric Power Company, Inc.'s current P/E ratio is 20.4x. The historical average is 21.6x. This places it at the 83th percentile of its historical range.
American Electric Power Company, Inc.'s current EV/EBITDA is 14.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.3x.
American Electric Power Company, Inc.'s return on equity (ROE) is 12.1%. The historical average is 10.1%.
Based on historical data, American Electric Power Company, Inc. is trading at a P/E of 20.4x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
American Electric Power Company, Inc.'s current dividend yield is 2.84% with a payout ratio of 56.1%.
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.
American Electric Power Company, Inc.'s Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.