American Electric Power (AEP): analysis in plain words
Is American Electric Power cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
American Electric Power (AEP) is listed on the Nasdaq and we classify it in utilities and renewables. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against American Electric Power according to those figures, and the questions people ask most about the stock. No buy or sell tips.
American Electric Power (AEP) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $129.24 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 21.1x | Price over earnings per share |
| Revenue growth | +13.7% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 14.2% | Profit for every 100 of sales |
| Net debt / EBITDA | 5.8x | Years of operating profit to repay debt |
| Dividend yield | 2.99% | Annual dividend over price |
| Market cap | $70.4 billion | What the stock market values it at |
The American Electric Power figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any AEP figure that is not available shows as N/A: we do not estimate it.
How American Electric Power makes money
American Electric Power is a regulated utility serving states including Ohio, Texas, West Virginia, Oklahoma and Indiana. It reports Vertically Integrated Utilities, the largest segment, Transmission and Distribution Utilities, AEP Transmission Holdco, which owns high-voltage lines, and Generation and Marketing. Regulators approve the rates it charges.
Over the last 12 months, American Electric Power brought in revenue of $23.6 billion. For every 100 it sells, American Electric Power keeps 46.6 after the direct cost of what it sells (gross margin) and 26.9 after all operating costs (operating margin).
American Electric Power against its sector
To know whether a American Electric Power figure is high or low you have to put it next to similar companies. This table compares American Electric Power with the median of the 14 utilities and renewables companies Fintols covers, with data as of November 4, 2026.
| Figure | American Electric Power | utilities and renewables median |
|---|---|---|
| P/E | 21.1x | 19.9x (14) |
| Revenue growth | +13.7% | +8.8% (14) |
| Net margin | 14.2% | 14.5% (14) |
| Dividend yield | 2.99% | 3.16% (14) |
| Net debt / EBITDA | 5.8x | 4.6x (14) |
In short, against the typical utilities and renewables company, American Electric Power grows faster and carries more debt. By size, American Electric Power ranks number 5 of 6 utilities and renewables companies quoted in USD on Fintols.
The bull case for American Electric Power
What works in favour of American Electric Power, according to its figures as of November 4, 2026:
- American Electric Power grew sales +13.7% in its latest quarter against the same quarter a year earlier, while the median utilities and renewables company Fintols tracks grew +8.8%.
- For income seekers, American Electric Power pays a dividend yielding 2.99% at today's price, using 62% of its profit to fund it.
The main risk for American Electric Power
Debt is heavy: American Electric Power carries net debt equal to 5.8x its annual EBITDA. With high interest rates or a weak year, interest payments eat into what it can invest or pay out.
And, like the rest of utilities and renewables, American Electric Power is exposed to interest rates (it funds grids and plants with a lot of debt) and changes in how its tariffs are regulated.
Frequently asked questions about American Electric Power
Is it a good time to buy American Electric Power stock?
Fintols does not tell you whether to buy or sell American Electric Power, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, American Electric Power stock trades at $129.24, 8% below its 52-week high ($140.58) and 15% above its low ($112.54). Its P/E is 21.1x against a utilities and renewables median of 19.9x, and 18.8x on the earnings analysts expect over the next 12 months. With American Electric Power, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does American Electric Power pay a dividend?
Yes. As of November 4, 2026, American Electric Power pays $3.88 per share a year, which at today's price is a yield of 2.99%. It uses 62% of its profit to pay it.
Is American Electric Power stock expensive?
It depends on what you compare it with. On P/E, American Electric Power trades at 21.1x its last 12 months of earnings: in line with the utilities and renewables median (19.9x). A high P/E alone does not make American Electric Power expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are American Electric Power's competitors?
On Fintols we compare American Electric Power with Vistra, Endesa and Iberdrola, which are also in utilities and renewables. As of November 4, 2026, Vistra is worth $40.4 billion and trades on a P/E of 20.3; Endesa is worth €45.5 billion and trades on a P/E of 18.8; Iberdrola is worth €150.8 billion and trades on a P/E of 30.5. Each has a side-by-side comparison with American Electric Power below.
American Electric Power competitors
- Vistra (VST) analysis · American Electric Power vs Vistra comparison
- Endesa (ELE) analysis · American Electric Power vs Endesa comparison
- Iberdrola (IBE) analysis · American Electric Power vs Iberdrola comparison
To understand American Electric Power better
- Dividend Growth Investing: FCF Payout Ratio and Compounding
- How to Read a Balance Sheet: A Beginner's Guide
More companies like American Electric Power: utilities and renewables stocks and S&P 500 companies. Open the full AEP analysis with its valuation and scenarios. Educational content about American Electric Power, not investment advice.