Risk factor
Poor trading liquidity
Profitability factor
Solid dividends
About
American Electric Power Co., Inc. (AEP) functions as an energy holding enterprise, primarily engaged in the production, transmission, and distribution of electricity. This Columbus, Ohio-based company employs 17,582 full-time staff. Its numerous utility subsidiaries provide service to customers in eleven states: Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia. AEP's operations are divided into several key segments, namely Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. The Vertically Integrated Utilities division oversees the comprehensive process of generating, transmitting, and delivering electricity to both retail and wholesale consumers. The Transmission and Distribution Utilities segment concentrates on conveying and distributing power to its customer base. Finally, AEP Transmission Holdco is responsible for the development, construction, and operation of essential transmission infrastructure.
Company Valuation
From both historical and forecast perspectives, the stock is fairly priced compared to similar stocks. Specifically, the stock is fairly valued on P/E, neutral on EV/EBIT
Target Price
The average target price of AEP is 146 and suggests 21.7% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increa