Top line accelerating.
+9.4% YoY versus +2.8% prior. 3y CAGR +4.1%.
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Utilities · Market Cap: $69.5B
Fundamentals as of 2026-03-31
The Question
All analysis on this page is for educational purposes only and does not constitute financial advice. Fair values are model-based estimates. Always do your own research.
1 of 2 legendary models say BUY AEP — but Peter Lynch disagrees.
What would legendary investors pay for AEP?
These figures are not quotes or opinions from Buffett, Graham, Lynch or the other investors. They are our own estimates, computed by applying the intrinsic-value formulas each investor is known for to this company’s financials.
For educational purposes only. Not a recommendation to buy or sell securities.
Concerns — American Electric Power Company, Inc.'s 11.5% ROE is below sector median.
Financial story
Concerns — American Electric Power Company, Inc.'s 11.5% ROE and 2.67 debt-to-equity warrant a closer look at the underlying business.
Bottom line: AEP splits the legendary models — 1 BUY, 0 HOLD, 1 AVOID, but earns a B sector grade (61/100) in Utilities. Whether the premium is justified depends on which lens you trust. Drill into the valuation breakdown and sector ranking for the full picture.
+9.4% YoY versus +2.8% prior. 3y CAGR +4.1%.
+9.4%Net margin 16.4% versus 14.9% prior (+1.5pp). Operating 24.3%.
16.4%P/E 19.1x — 3% below the 5y median of 19.6x. Forward 20.1x signals EPS contraction next year.
19.1xHow does AEP compare?
Average fair value across qualifying models: $334. See the per-investor fair-value table in the valuation tab.
AEP trades at 19.2x earnings. Sector context and per-investor signals are in the valuation tab.
AEP and SRE differ on P/E, ROE, and revenue growth. See the full AEP vs SRE compare matrix.
Buffett and Lynch evaluate AEP against their respective frameworks. Per-model fair value and reasoning are in the valuation tab.
AEP's P/E ratio is 19.2x. 5-year P/E history is in the financials tab.
1 of 2 legendary models say BUY. Full breakdown by investor and signal is in the valuation tab.
See exactly where AEP ranks
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Sign in to see the rankingAEP sits at #3 in Utilities with a B grade (61/100).