American Electric Valuation
| AEP Stock | EUR 89.50 0.50 0.56% |
At this time, the firm appears to be fairly valued. American Electric Power shows a prevailing Real Value of €90.5 per share. The current price of the firm is €89.5. Our model approximates the value of American Electric Power from analyzing the firm fundamentals such as price to sales of 2.65 X, and Current Valuation of 82.68 B as well as examining its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that American Electric's price fluctuation is very steady at this time. Calculation of the real value of American Electric Power is based on 3 months time horizon. Increasing American Electric's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the American stock is determined by what a typical buyer is willing to pay for full or partial control of American Electric Power. Since American Electric is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Electric's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 89.5 | Real 90.5 | Hype 89.5 |
The intrinsic value of American Electric's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence American Electric's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of American Electric Power helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Electric more accurately as focusing exclusively on American Electric's fundamentals will not take into account other important factors: American Electric Total Value Analysis
American Electric Power is presently projected to have takeover price of 82.68 B with market capitalization of 36.92 B, debt of 33.63 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the American Electric fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
82.68 B | 36.92 B | 33.63 B |
American Electric Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of American suggests not a very effective usage of assets in January.American Electric Profitability Analysis
The company reported the revenue of 19.64 B. Net Income was 2.31 B with profit before overhead, payroll, taxes, and interest of 0.About American Electric Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of American Electric Power. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Electric Power based exclusively on its fundamental and basic technical indicators. By analyzing American Electric's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of American Electric's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Electric. We calculate exposure to American Electric's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of American Electric's related companies.8 Steps to conduct American Electric's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates American Electric's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct American Electric's valuation analysis, follow these 8 steps:- Gather financial information: Obtain American Electric's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine American Electric's revenue streams: Identify American Electric's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research American Electric's industry and market trends, including the size of the market, growth rate, and competition.
- Establish American Electric's growth potential: Evaluate American Electric's management, business model, and growth potential.
- Determine American Electric's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate American Electric's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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 to better understand how to build diversified portfolios, which includes a position in American Electric Power. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.