Is American Electric Power Company, Inc. (AEP) Undervalued?
Based on the current stock price of $115.67 and a P/E ratio of 16.96,American Electric Power Company, Inc. has a PEG ratio of 3.27.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 3.27, AEP appears to be potentially overvalued relative to its growth rate of 5.18%.
Based on a PEG ratio of 2.00 (adjusted for dividends).
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How we analyzed AEP
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 16.96and dividing it by the annual growth rate of 5.18%.
PEG = 16.96 (P/E) ÷ 5.18 (Growth) = 3.27
Frequently Asked Questions about AEP
What is the current PEG Ratio for American Electric Power Company, Inc. (AEP)?+
The current PEG Ratio for American Electric Power Company, Inc. is 3.27. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is AEP stock undervalued right now?+
Based on the PEG ratio of 3.27, American Electric Power Company, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for AEP?+
The PEGY ratio for American Electric Power Company, Inc. is 2.00. This metric accounts for dividend yield (3.29%), providing a more complete valuation picture.