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American Electric Power Company Inc
XETRA:AEP

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American Electric Power Company Inc
XETRA:AEP
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Price: 25.86 EUR
Market Cap: €58.3B

EV/EBIT

22
Current
3%
More Expensive
vs 3-y average of 21.4

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
22
=
Enterprise Value
€117.5B
/
EBIT
$5.4B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
22
=
Enterprise Value
€117.5B
/
EBIT
$5.4B

Valuation Scenarios

American Electric Power Company Inc is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (21.4), the stock would be worth €25.12 (3% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-11%
Maximum Upside
No Upside Scenarios
Average Downside
5%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 22 €25.86
0%
3-Year Average 21.4 €25.12
-3%
5-Year Average 21.4 €25.16
-3%
Industry Average 21 €24.65
-5%
Country Average 19.6 €23.03
-11%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
€117.5B
/
Jan 2026
$5.4B
=
22
Current
€117.5B
/
Dec 2026
$6.1B
=
19.2
Forward
€117.5B
/
Dec 2027
$6.8B
=
17.3
Forward
€117.5B
/
Dec 2028
$7.6B
=
15.4
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
US
American Electric Power Company Inc
XETRA:AEP
73.1B EUR 22 20.4
US
Nextera Energy Inc
NYSE:NEE
200.5B USD 36.2 29.3
ES
Iberdrola SA
MAD:IBE
128.8B EUR 16.3 20.5
IT
Enel SpA
MIL:ENEL
99.2B EUR 13.9 23.3
US
Constellation Energy Corp
NASDAQ:CEG
106.1B USD 36.1 39.4
US
Southern Co
NYSE:SO
103.2B USD 23.3 23.8
US
Duke Energy Corp
NYSE:DUK
99.6B USD 21.2 20.3
FR
Electricite de France SA
PAR:EDF
46.6B EUR -3.2 -2.5
US
Entergy Corp
NYSE:ETR
51.5B USD 24.7 29.3
US
Xcel Energy Inc
NASDAQ:XEL
49.6B USD 29.2 24.6
US
Exelon Corp
NASDAQ:EXC
47.8B USD 18.7 17.3
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
American Electric Power Company Inc
XETRA:AEP
Average EV/EBIT: 24.2
22
12%
1.8
US
Nextera Energy Inc
NYSE:NEE
36.2
25%
1.4
ES
Iberdrola SA
MAD:IBE
16.3
6%
2.7
IT
Enel SpA
MIL:ENEL
13.9
15%
0.9
US
Constellation Energy Corp
NASDAQ:CEG
36.1
36%
1
US
Southern Co
NYSE:SO
23.3
14%
1.7
US
Duke Energy Corp
NYSE:DUK
21.2
9%
2.4
FR
Electricite de France SA
PAR:EDF
Negative Multiple: -3.2 N/A N/A
US
Entergy Corp
NYSE:ETR
24.7
17%
1.5
US
Xcel Energy Inc
NASDAQ:XEL
29.2
22%
1.3
US
Exelon Corp
NASDAQ:EXC
18.7
8%
2.3
P/E Multiple
Earnings Growth PEG
US
American Electric Power Company Inc
XETRA:AEP
Average P/E: 24.8
20.4
5%
4.1
US
Nextera Energy Inc
NYSE:NEE
29.3
13%
2.3
ES
Iberdrola SA
MAD:IBE
20.5
7%
2.9
IT
Enel SpA
MIL:ENEL
23.3
25%
0.9
US
Constellation Energy Corp
NASDAQ:CEG
39.4
40%
1
US
Southern Co
NYSE:SO
23.8
12%
2
US
Duke Energy Corp
NYSE:DUK
20.3
7%
2.9
FR
Electricite de France SA
PAR:EDF
Negative Multiple: -2.5 N/A N/A
US
Entergy Corp
NYSE:ETR
29.3
13%
2.3
US
Xcel Energy Inc
NASDAQ:XEL
24.6
16%
1.5
US
Exelon Corp
NASDAQ:EXC
17.3
7%
2.5

Market Distribution

In line with most companies in the United States of America
Percentile
44rd
Based on 8 638 companies
44rd percentile
17.8
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

American Electric Power Company Inc
Glance View

American Electric Power Company Inc., often referred to simply as AEP, weaves its legacy into the very fabric of American industry as one of the largest electricity generators in the United States. With roots tracing back over a century, AEP has evolved, growing a vast network of infrastructure across 11 states. This company primarily hinges on the business of generating, transmitting, and distributing electricity. AEP operates an extensive system of power plants that utilize various sources – coal, natural gas, renewable energy, and nuclear – effectively harnessing diversified energy for stability and resilience. The company's transmission network, one of the largest in the country, facilitates the movement of electricity from its generation hubs to vast populations across its service regions. With regulatory bodies overseeing its operations, AEP remains steadfast in navigating the delicate balance between reliable service delivery and operational efficiency. At its core, AEP's revenue streams flow from selling electricity to end-users—ranging from residential homes to large-scale industrial outfits—distributed through its well-defined service network. Additionally, AEP generates income by selling electricity on wholesale markets, capitalizing on excess generation capacity when demand spikes. The company places a strong emphasis on bolstering its energy grid infrastructure, investing significantly in modernization projects aimed at enhancing grid reliability and integrating cleaner energy sources. This positions AEP to adapt to the evolving energy landscape, where sustainable and renewable energy discussions are increasingly pivotal. As AEP marches forward, its story is not merely about power lines and plants but about connecting communities, fueling industries, and paving its path in the transformative world of energy.

AEP Intrinsic Value
30.02 EUR
Undervaluation 14%
Intrinsic Value
Price €25.86
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