Is American Electric Power Co., Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for American Electric Power Co., Inc. has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 19, an EV to EBITDA of 12.50, and a Price to Book Value of 2.07.
In comparison to its peers, American Electric Power's P/E ratio is lower than NextEra Energy, which stands at 35.78, but higher than Exelon Corp.'s fair valuation P/E of 15.83. Additionally, The Southern Co. has a P/E of 22.70, highlighting that while American Electric Power is expensive, it is not the highest in its category. Despite its recent stock performance showing a 1-year return of 18.68% compared to the S&P 500's 10.26%, the overall valuation suggests caution for potential investors.