American Electric Power Company CAPE ratio

American Electric Power Company’s CAPE ratio, or Cyclically Adjusted Price-to-Earnings ratio, evaluates its stock price relative to its inflation-adjusted earnings over the past 10 years. This metric helps investors assess whether the stock is overvalued or undervalued based on long-term profitability. As a utility company, AEP’s CAPE ratio tends to reflect the stability of its earnings, influenced by regulatory environments and energy demand. A lower CAPE ratio might suggest undervaluation, while a higher one could indicate overvaluation compared to historical trends.