American Electric Power (AEP) stock is currently trading at an EV-to-EBITDA valuation of 10x, while its five-year historical valuation comes in around 10x. So AEP stock seems to be trading at a fair valuation compared to its historical multiple as well as the industry average.
AEP appears to be trading at a premium compared to peers, given its price-to-earnings (or PE) multiple. It’s currently trading at 17x.
In comparison, Southern Company (SO) stock is currently trading at an EV-to-EBITDA valuation multiple of 10x—lower than its five-year historical average. PPL (PPL) is currently trading at a valuation multiple of 9.6x.
AEP has been paying dividends for more than 100 year—one of the longest dividend-paying histories among S&P 500 utilities (XLU). You can learn about AEP’s dividends in American Electric Power’s Dividend Growth Compared to Its Peers. Also see These Utilities Have Raised Dividends for More than 40 Years.