American Electric Power CompanyStock Price and Value Analysis

Should you buy American Electric Power Company stock? (NYSE:AEP). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is very stable.
  • This company has a large dividend yield!
  • This company is making money at a modest rate.
  • This company has wild ups and downs.
  • This stock looks overpriced.

AEP Free Cash Flow Trend

Based on historical returns, we believe that American Electric Power Company can grow its free cash at a rate of about 2%. That's positive!

Free Cash Flow trendline for AEP
Free Cash Flow trendline for American Electric Power Company

Inside the AEP Numbers

AEP Price
(American Electric Power Company stock price per share)
$76.93
[?] AEP Fair Price
(based on intrinsic value)
$63.81
[?] AEP Safety Price (based on a variable margin of safety) $51.05
[?] PE Ratio versus Sector 29% higher than other Utilities stocks
[?] PE Ratio versus Industry 28% higher than other Electric Utilities stocks
[?] Cash Yield 6.05%
[?] Free Cash Flow Jitter 68%
[?] Dividend Yield 3%

Is American Electric Power Company Stock on Sale?

We believe that American Electric Power Company may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

American Electric Power Company looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy AEP Stock?

Does American Electric Power Company have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.