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Fair Value for American Electric Power Company (AEP)

See growth priced into American Electric Power Company (AEP): reverse DCF, implied rate vs history and analysts, FCF view. Free intrinsic value calculator for education.

Fair value (multi-method)

Four independent methods triangulate what AEP is worth. The headline is the Forward-DCF intrinsic value at a normalized growth rate; the margin of safety compares it to the current price.

Estimated fair value (Forward DCF)

$247.16

Margin of safety
+46.39% vs current price $132.50

Method range

$46.14 $247.16

median $123.31

Methods disagree

Valuation methods

Each method’s implied fair value per share and its upside versus the current price. Missing methods (no analyst coverage, negative earnings, etc.) are shown as “—”.

  • Forward DCF$247.16
  • Exit multiple$106.16
  • Analyst target$140.45
  • Graham number$46.14

Stock price

$132.50

EPS (TTM)

$6.77

5Y EPS CAGR

8.5%

Fair value @ hist. growth

$247.16

This analysis is for informational purposes only and is not financial advice. Scenario prices and DCF-style figures depend on your assumptions and data from public filings and estimates. They are not forecasts of future returns.

Implied EPS growth

0.8%

per year over your projection horizon

Discount vs DCF

Margin of safety 46.4% vs hist-growth DCF

Historical 5Y CAGR

8.5%

Your model implies

0.8%

Next-year analyst consensus

-6.2%

Model inputs

Move sliders to test how the reverse DCF reacts. Historical-growth markers show where the company has actually grown over the last cycle.

Discount rate (cost of equity proxy)7.1%
Terminal growth2.50%
Projection years10 yr

Sensitivity — implied growth vs your assumptions

Each cell shows the per-share growth rate the market would need to justify the current price at that combination of discount rate (rows) and terminal growth (columns). Your selected inputs are highlighted.

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount1.5%2.0%2.5%3.0%3.5%
5.1%-2.9%-4.1%-5.5%-7.3%-9.5%
6.1%-0.1%-1.0%-2.0%-3.3%-4.7%
7.1%2.4%1.7%0.8%-0.1%-1.2%
8.1%4.6%4.0%3.3%2.5%1.7%
9.1%6.7%6.1%5.5%4.9%4.2%
Color≤ historical CAGRModerate premiumHigh premium (≥ 15pp above hist)Your inputs

Historical multiples

Each bar is the trailing five-year range (low left, high right). Filled portion runs from low to today; the dot marks today; the small tick marks the five-year median. Low, median, and high are listed under each bar.

P/EToday17.3
5Y low16.5
Median17.9
5Y high21.1
P/SToday2.7· at high
5Y low2.2
Median2.5
5Y high2.7
EV/EBITDAToday11.8
5Y low11.7
Median11.9
5Y high12.6

PEG

0.43

Low vs growth

Net debt

$50B

Total debt − cash

Beta

0.50

Vs market benchmark

Annual diluted EPS

Per-share earnings by fiscal year — last 5 years anchor the CAGR reference above.

Scale: 1.24 to 6.66 EPS; horizontal line at 0. Fiscal years with no row in the database are omitted.

Frequently asked questions