American Electric Power Company, Inc. — Utilities - Regulated Electric. Scored on the same transparent model behind the daily rankings.
★
AEP
American Electric Power Company, Inc. · Utilities - Regulated Electric
FCF$2.6bB
Rev+8.2%B
D/E1.61B
P/E22.2xC+
PEG2.18C
65.7Score
$128.32$69.9B
1Y Target$145.52Analyst consensus · 21 analysts
5Y Target$213.06Compound horizon
10Y Target$316.06Long-dated conviction
FCF$2.6bTTMB
FCF $2.6b — solid, comfortably covers operations and capital return
Rev+8.2%TTM YoYB
Revenue +8.2% — at or above S&P median
D/E1.61B
D/E 1.61 — near the Utilities debt median (≈60th pctile)
P/E22.2xC+
P/E 22.2 — above the Utilities median (≈75th pctile)
PEG2.18C
PEG 2.18 — expensive relative to growth rate
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 65.7
Quality0.60
Growth0.74
Value0.65
Entry · Margin of safety
52-week rangeMid-range
9% off the 12-month high
vs DCF fair value1% aboveest. fair value ~$127
What the price assumes: free cash flow compounding at ~6% a year for the next decade — vs the ~8% a year our model projects from current growth and analyst estimates.
Quality signals · context only
ROIC5.1% · C+return on invested capital — not score-weighted
Why now
Utilities - Regulated Electric · market cap $69.9b. 9% off the 52-week high of $140.58. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $145.52 (implying +13% upside).
Moat
Net margin 17% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 12% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. $69.9b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon
1-3 yr $145.52 (21-analyst consensus) — fundamentals + valuation re-rating. 5 yr $213.06 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $316.06 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
AEP vs the Top Picks average
Pillar
AEP
Book avg
Diff
Quality
0.60
0.83
-0.23
Growth
0.74
0.91
-0.17
Value
0.65
0.75
-0.10
Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · AEP
Trend
+6.4 over 34 daily scores
From 59.3 (Jun 22) → 65.7 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · AEP
$
%
%
Shares to buy
15
Position size
$1,925
3.8% of portfolio
Stop price
$96.24
25% below $128.32
$ at risk if stopped
$481.20
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
American Electric Power Company, Inc. (AEP): score, valuation & FAQ
American Electric Power Company, Inc. (AEP) is a Utilities - Regulated Electric company that scores 65.7 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
On valuation, AEP sits close to our DCF fair-value estimate (within a few percent) — the current price implies roughly 6% annual free-cash-flow growth over the next decade.
Is AEP a good stock to buy?
Bull Rankings scores AEP 65.7 out of 100 on its quality-growth model, which is a solid, above-average reading. A score is a quantitative screen of American Electric Power Company, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does AEP score 65.7 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). AEP grades middle-of-pack across the strip. Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is AEP overvalued or undervalued?
Based on $128.32, AEP sits close to our DCF fair-value estimate (within a few percent) — the current price implies roughly 6% annual free-cash-flow growth over the next decade. It trades at a 22.2x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in AEP?
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.