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

As of 17 October 2025, the valuation grade for American Electric Power Co., Inc. moved from very expensive to fair. The company appears to be fairly valued based on its current 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 Duke Energy Corp. has a P/E of 18.96, indicating that American Electric Power is positioned more attractively within its sector.
In terms of stock performance, American Electric Power has outperformed the S&P 500 year-to-date with a return of 27.43% compared to the S&P's 13.30%. This performance, coupled with its fair valuation, suggests that the company's stock is currently a reasonable investment opportunity.