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American Electric Power’s Valuation Compared to Its Peers

Vincent Kruger
American Electric Power’s Valuation Compared to Its Peers

American Electric Power (AEP) is trading at a forward PE ratio of 18.6x based on analysts’ estimated EPS for 2019. In comparison, peers’ average forward valuation is close to 15x. American Electric Power’s five-year historical average valuation is close to 17x. American Electric Power seems to be trading at a premium valuation compared to peers and its historical average. The company’s earnings growth of close to 4% next year doesn’t justify its premium valuation.