Latest Ratios: P/E Ratio 11.6x · 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 | $10.4B | $10.2B | $9.2B | $13.7B | $19.2B | $16.2B | $15.7B | $13.3B | $9.6B | $7.1B | $7.7B |
| Enterprise Value | $38.7B | $38.5B | $36.7B | $39.2B | $41.3B | $33.9B | $34.5B | $32.4B | $27.7B | $26.2B | $26.8B |
| P/E Ratio → | 11.60 | 11.38 | 5.45 | 55.00 | — | — | 335.71 | 44.22 | 7.99 | — | — |
| P/S Ratio | 0.85 | 0.83 | 0.75 | 1.08 | 1.52 | 1.45 | 1.62 | 1.30 | 0.90 | 0.68 | 0.75 |
| P/B Ratio | 0.87 | 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 | 2.42 | 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 | 11.29 | 11.22 | 11.14 | 11.56 | 12.18 | 9.42 | 9.59 | 10.10 | 8.18 | 7.68 | 8.11 |
| EV / EBIT | 19.63 | 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 | 8.6% | 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 |
Project-level debt complexity
According to current market data, AES trades at a forward P/E of 6.32, which appears to reflect significant investor skepticism regarding the company's ability to successfully convert its massive renewable backlog into stable, long-term earnings while managing the volatility inherent in its global IPP portfolio.
The wide spread between the TTM P/E of 11.64 and the forward multiple suggests that the market is pricing in a substantial earnings recovery that remains contingent on project execution. Investors should monitor whether this valuation discount persists as the company shifts its revenue mix toward higher-margin, carbon-free energy contracts.
As reported in recent financial statements, the company's debt-to-capital ratio has remained elevated, consistently hovering near 0.80, which indicates a highly leveraged capital structure that leaves little room for operational missteps during the ongoing transition from thermal to renewable generation assets.
The persistent reliance on high debt levels to fund capital-intensive projects suggests that the balance sheet remains vulnerable to interest rate fluctuations. Analysts should investigate the extent to which non-recourse project-level debt masks the true consolidated leverage profile of the parent company.
Based on reported figures, the dividend yield of 4.8% appears attractive, yet the payout ratio's extreme volatility, ranging from 2.7% to 43.3% over the last ten quarters, suggests that shareholder distributions are secondary to the company's aggressive and ongoing capital expenditure requirements.
The inconsistency in dividend coverage implies that cash flow is prioritized for project development rather than consistent shareholder returns. Investors should monitor whether the company can maintain these payouts as it continues to navigate the high cash-burn phase of its renewable energy expansion.
As indicated by market analysis, the most commonly misapplied metric for AES is the standard regulated utility P/E ratio, which fails to account for the company's significant exposure to non-regulated IPP operations and the inherent volatility of its global project-level cash flows.
Applying a traditional utility valuation framework obscures the growth potential of the company's carbon-free energy contracts while simultaneously underestimating the risks associated with its international footprint. A more appropriate approach would involve a sum-of-the-parts valuation that separates the stable US regulated rate base from the higher-risk, higher-growth global renewable portfolio.
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 11.6x. 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 11.6x. 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 4.81% 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.