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

As of 17 October 2025, the valuation grade for American Electric Power Co., Inc. has moved from very expensive to fair. Based on the current metrics, the company appears fairly valued. The P/E ratio stands at 19, while the EV to EBITDA ratio is 12.50, and the Price to Book Value is 2.07. In comparison to peers, American Electric Power's P/E ratio is lower than NextEra Energy's 34.85 and The Southern Co.'s 25.19, indicating a more attractive valuation relative to these competitors.
In terms of recent performance, American Electric Power has outperformed the S&P 500 in the year-to-date period with a return of 27.43% compared to the S&P's 13.30%. This suggests that the stock is performing well relative to the broader market, reinforcing the notion that it is fairly valued at this time.