American Electric Current Valuation vs. Price To Book
| AEP Stock | EUR 89.50 0.50 0.56% |
For American Electric profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Electric to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Electric Power utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Electric's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Electric Power over time as well as its relative position and ranking within its peers.
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American Electric Power Price To Book vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American Electric's current stock value. Our valuation model uses many indicators to compare American Electric value to that of its competitors to determine the firm's financial worth. American Electric Power is the top company in current valuation category among its peers. It also is number one stock in price to book category among its peers . The ratio of Current Valuation to Price To Book for American Electric Power is about 40,518,549,464 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Electric's earnings, one of the primary drivers of an investment's value.American Current Valuation vs. Competition
American Electric Power is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Other industry is presently estimated at about 156.35 Billion. American Electric totals roughly 83.75 Billion in current valuation claiming about 54% of all equities under Other industry.
American Price To Book vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
American Electric |
| = | 83.75 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
American Electric |
| = | 2.07 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
American Price To Book Comparison
American Electric is currently under evaluation in price to book category among its peers.
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Electric. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of American Electric position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the American Electric's important profitability drivers and their relationship over time.
Use American Electric in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Electric position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Electric will appreciate offsetting losses from the drop in the long position's value.American Electric Pair Trading
American Electric Power Pair Trading Analysis
The ability to find closely correlated positions to American Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Electric when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Electric - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Electric Power to buy it.
The correlation of American Electric is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Electric Power moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Electric can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your American Electric position
In addition to having American Electric in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Measuring and Control Equipment Thematic Idea Now
Measuring and Control Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Measuring and Control Equipment theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Measuring and Control Equipment Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in American Stock
When determining whether American Electric Power is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Electric Power Stock. Highlighted below are key reports to facilitate an investment decision about American Electric Power Stock:Check out Trending Equities. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
To fully project American Electric's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Electric Power at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include American Electric's income statement, its balance sheet, and the statement of cash flows.