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

As of 31 July 2025, the valuation grade for American Electric Power Co., Inc. moved from expensive to fair. The company is currently fairly valued based on its metrics. 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, peers such as NextEra Energy, Inc. have a significantly higher P/E of 34.85, while Constellation Energy Corp. shows a fair valuation with a P/E of 33.93.
Despite recent underperformance against the S&P 500 over the past year and three years, with returns of 3.12% and 6.06% respectively compared to 17.14% and 70.41% for the index, the company's valuation metrics suggest it is positioned reasonably within its industry.