Last Price$107.71.6%
Market Cap$56.5B
DCF value
($81.2)
Overvalued (DCF value)
(175.4%)
Discount Rate
4.5%
Long-Term Growth Rate
1.5%
Stock quality
6/10
Good
AEP DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Dec'19 Actual | Dec'20 Actual | Dec'21 Actual | Dec'22 Actual | Dec'23 Actual | Dec'24 Estimate | Dec'25 Estimate | Dec'26 Estimate | Dec'27 Estimate | Dec'28 Estimate | Dec'29 Estimate | Dec'30 Estimate | Dec'31 Estimate | Dec'32 Estimate | Dec'33 Estimate | Dec'34 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 15,561.4 (3.9%) | 14,918.5 (4.1%) | 16,792.0 12.6% | 19,639.5 17.0% | 18,982.3 (3.3%) | 20,121.3 6.0% | 21,016.9 4.5% | 21,610.6 2.8% | 21,752.3 0.7% | 21,403.9 (1.6%) | 21,171.7 (1.1%) | 21,051.5 (0.6%) | 21,040.8 (0.1%) | 21,138.9 0.5% | 21,346.7 1.0% | 21,666.9 1.5% |
% margin | 2,592.3 16.7% | 2,987.7 20.0% | 3,411.3 20.3% | 3,482.7 17.7% | 3,556.2 18.7% | 4,164.3 20.7% | 4,349.7 20.7% | 4,472.5 20.7% | 4,501.9 20.7% | 4,429.8 20.7% | 4,381.7 20.7% | 4,356.8 20.7% | 4,354.6 20.7% | 4,374.9 20.7% | 4,417.9 20.7% | 4,484.2 20.7% |
NOPAT % effective tax rate | 2,610.5 16.8% | 2,931.3 19.6% | 3,254.4 19.4% | 3,474.9 17.7% | 3,468.3 18.3% | 4,061.4 20.2% | 4,242.1 20.2% | 4,362.0 20.2% | 4,390.6 20.2% | 4,320.2 20.2% | 4,273.4 20.2% | 4,249.1 20.2% | 4,247.0 20.2% | 4,266.8 20.2% | 4,308.7 20.2% | 4,373.3 20.2% |
% of revenue | 2,740.1 17.6% | 2,906.8 19.5% | 3,046.4 18.1% | 3,285.7 16.7% | 3,187.0 16.8% | 3,465.0 17.2% | 3,619.2 17.2% | 3,721.4 17.2% | 3,745.8 17.2% | 3,685.8 17.2% | 3,645.9 17.2% | 3,625.2 17.2% | 3,623.3 17.2% | 3,640.2 17.2% | 3,676.0 17.2% | 3,731.1 17.2% |
% of revenue | (6,143.7) (39.5%) | (6,316.0) (42.3%) | (5,764.1) (34.3%) | (6,772.4) (34.5%) | (7,506.5) (39.5%) | (7,267.5) (36.1%) | (7,590.9) (36.1%) | (7,805.4) (36.1%) | (7,856.5) (36.1%) | (7,730.7) (36.1%) | (7,646.8) (36.1%) | (7,603.4) (36.1%) | (7,599.6) (36.1%) | (7,635.0) (36.1%) | (7,710.0) (36.1%) | (7,825.7) (36.1%) |
% of revenue | 26.0 0.2% | (508.6) (3.4%) | 236.3 1.4% | (237.7) (1.2%) | (703.5) (3.7%) | (235.4) (1.2%) | (245.8) (1.2%) | (252.8) (1.2%) | (254.4) (1.2%) | (250.4) (1.2%) | (247.7) (1.2%) | (246.2) (1.2%) | (246.1) (1.2%) | (247.3) (1.2%) | (249.7) (1.2%) | (253.4) (1.2%) |
Free Cash Flow to Firm (FCFF) % of revenue | (767.1) (4.9%) | (986.5) (6.6%) | 773.0 4.6% | (249.5) (1.3%) | (1,554.7) (8.2%) | 23.5 0.1% | 24.6 0.1% | 25.3 0.1% | 25.4 0.1% | 25.0 0.1% | 24.7 0.1% | 24.6 0.1% | 24.6 0.1% | 24.7 0.1% | 25.0 0.1% | 25.3 0.1% |
% of FCFF used in calculation | 100.0% | 83.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | |||||||
Discount factor | 0.98 | 0.94 | 0.90 | 0.86 | 0.82 | 0.79 | 0.75 | 0.72 | 0.69 | |||||||
Discounted FCFF (DFCFF) | 20.0 | 23.6 | 22.8 | 21.5 | 20.3 | 19.3 | 18.5 | 17.8 | 17.2 |
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AEP DCF Value
DCF Value Calculation
as of Mar 03, 2025
Sum of DFCFF
% share of EV
180.9M
30.0%
Terminal Value (TV)
613.2M
Discounted TV
% share of EV
422.1M
70.0%
603.0M
Total Debt
43.7B
(42.6B)
Shares outstanding
524.4M
FX rate
1.0
(81.2)
175.4% overvalued
Equity Value Bridge
AEP DCF Financials
Revenue
$19.0B -> $21.3B
1.2% CAGR
Operating Income
$3,556.2M -> $4,417.9M
2.2% CAGR
FCFF
($1,554.7M) -> $25.0M
N/A CAGR
AEP DCF sensitivity
DCF value
Long-term Terminal growth rate
0.5%
1.0%
1.5%
2.0%
2.5%
WACC
3.0%
($81.0)
($81.0)
($81.0)
($81.0)
($81.0)
3.5%
($81.0)
($81.0)
($81.0)
($81.0)
($81.0)
4.5%
($81.0)
($81.0)
($81.0)
($81.0)
($81.0)
4.5%
($81.0)
($81.0)
($81.0)
($81.0)
($81.0)
5.0%
($81.0)
($81.0)
($81.0)
($81.0)
($81.0)
DCF value, undervalued / overvalued
Long-term Terminal growth rate
0.5%
1.0%
1.5%
2.0%
2.5%
WACC
3.0%
(175.0%)
(175.0%)
(175.0%)
(175.0%)
(175.0%)
3.5%
(175.0%)
(175.0%)
(175.0%)
(175.0%)
(175.0%)
4.5%
(175.0%)
(175.0%)
(175.0%)
(175.0%)
(175.0%)
4.5%
(175.0%)
(175.0%)
(175.0%)
(175.0%)
(175.0%)
5.0%
(175.0%)
(175.0%)
(175.0%)
(175.0%)
(175.0%)
Explore more intrinsic value tools hub for AEP
Margin of safety
Peter Lynch charts
Ben Graham Fair Value
Earnings Power Value
Relative Value
Earnings growth model
Discount rate
Peter Lynch Fair Value
Intrinsic Value
Reverse DCF
FAQ
What is American Electric Power Company, Inc. DCF (discounted cash flow) valuation?
As of Mar 03, 2025, American Electric Power Company, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at ($81.2). This suggests it may be overvalued by (175.4%) compared to its current price of around $107.7, using a WACC of 4.5% and growth rates of 1.5%.
What is American Electric Power Company, Inc. WACC?
As of Mar 03, 2025, American Electric Power Company, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 4.5%.
What is American Electric Power Company, Inc. Enterprise Value?
As of Mar 03, 2025, American Electric Power Company, Inc.'s Enterprise Value (EV) is approximately $603.0M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.