AEP Intrinsic Value – Invest in American Electric Power to Boost Your Passive Income!
January 4, 2024
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American Electric Power ($NASDAQ:AEP) (AEP) is an excellent choice for generating passive income. Its investments in renewable energy and utility-scale battery storage systems offer investors the potential to benefit from the growth in green energy sources. With a strong history of steady dividend payments, AEP is a reliable source of income for investors. In addition to providing reliable passive income, AEP also offers investors the potential for long-term capital gains. The company’s investment in clean energy sources as well as its commitment to new technologies make it a smart bet for long-term growth.
AEP’s strong financial position, low debt levels, and sizable customer base ensure that the company is well-positioned to take advantage of future opportunities. Investing in AEP is a smart move for those seeking reliable income and long-term capital appreciation. Not only is the company a leader in the electric utility industry, but it also offers investors the potential for growing passive income and capital gains.
Price History
On Wednesday, AEP stock opened at $83.6 and closed at $83.4, up by 0.2% from its previous closing price of 83.2. This indicates a stable stock value that is likely to remain consistent over time. As a result, investors can be confident that their investment in AEP will bring them steady returns.
AEP’s reliable dividends make the stock an ideal choice for investors who are looking for consistent returns without taking on too much risk. Investing in AEP may also bring a potential long-term capital gain, making it an all-around attractive option for those looking to generate passive income. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AEP. More…
| Total Revenues | Net Income | Net Margin |
| 19.29k | 2.26k | 11.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AEP. More…
| Operations | Investing | Financing |
| 4.23k | -6.57k | 2.17k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AEP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 95.13k | 69.78k | 48.15 |
Key Ratios Snapshot
Some of the financial key ratios for AEP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.9% | 8.0% | 20.4% |
| FCF Margin | ROE | ROA |
| -18.3% | 10.0% | 2.6% |
Analysis – AEP Intrinsic Value
At GoodWhale, we have conducted a thorough analysis of AMERICAN ELECTRIC POWER’s fundamentals. Our proprietary Valuation Line has calculated the fair value of AMERICAN ELECTRIC POWER’s share to be around $91.9. However, the stock is currently being traded at $83.4, which is a fair price that is undervalued by 9.3%. Therefore, we believe AMERICAN ELECTRIC POWER presents an attractive investment opportunity for investors who want to capitalize on the current market conditions. More…
Peers
In the business world, competition is fierce. American Electric Power Co Inc is no exception. The company competes with other large energy companies such as Portland General Electric Co, Idacorp Inc, and Fortis Inc. All of these companies are striving to provide the best service and products to their customers.
– Portland General Electric Co ($NYSE:POR)
Portland General Electric Co is an electric utility company that serves the Portland metropolitan area in Oregon. As of 2022, the company has a market capitalization of 3.9 billion dollars and a return on equity of 9.64%. Portland General Electric is the largest provider of electricity in Oregon, serving over 800,000 customers. The company is vertically integrated and generates, transmits, and distributes electricity. It also provides natural gas service to over 70,000 customers in the Portland area.
– Idacorp Inc ($NYSE:IDA)
Idacorp Inc is an electric and natural gas utility holding company based in Boise, Idaho, serving customers in Idaho, Oregon, Washington, and Wyoming. As of 2021, it had a market capitalization of $4.93 billion and a return on equity of 8.44%. The company’s primary business is the generation, transmission, and distribution of electric and natural gas service. It also provides other energy-related services, such as telecommunications and renewable energy.
– Fortis Inc ($TSX:FTS)
Fortis Inc is a large Canadian holding company with extensive operations in the electricity sector. The company has a market capitalization of $24.59 billion as of 2022 and a return on equity of 8.51%. Fortis operates in four segments: Utilities, which includes electric and gas utility operations; Energy Infrastructure, which includes power generation, transmission, and storage facilities; Non-Utility, which focuses on commercial real estate and private equity investments; and Corporate & Other. The company has operations in Canada, the United States, and the Caribbean.
Summary
American Electric Power (AEP) is an attractive investment opportunity for those looking to generate passive income. Additionally, AEP recently announced a $3 billion capital expenditure plan that is expected to further enhance the company’s growth prospects. Investors seeking to generate passive income may find AEP an attractive investment option.
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