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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)

$243.15

Margin of safety
+46.89% vs current price $129.14

Method range

$46.14 $243.15

median $121.37

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$243.15
  • Exit multiple$106.08
  • Analyst target$136.67
  • Graham number$46.14

Stock price

$129.14

EPS (TTM)

$6.77

5Y EPS CAGR

8.5%

Fair value @ hist. growth

$243.15

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

0.7%

per year over your projection horizon

Discount vs DCF

Margin of safety 46.9% vs hist-growth DCF

Historical 5Y CAGR

8.5%

Your model implies

0.7%

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%-3.0%-4.2%-5.6%-7.3%-9.4%
6.1%-0.2%-1.1%-2.1%-3.3%-4.7%
7.1%2.2%1.5%0.7%-0.2%-1.3%
8.1%4.4%3.8%3.1%2.4%1.5%
9.1%6.4%5.9%5.3%4.7%4.0%
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/EToday16.7
5Y low16.5
Median17.9
5Y high21.1
P/SToday2.7· at high
5Y low2.2
Median2.5
5Y high2.7
EV/EBITDAToday12.5
5Y low11.7
Median12.0
5Y high12.6

PEG

0.43

Low vs growth

Net debt

$50.0B

Total debt − cash

Beta

0.52

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