American Electric Power Company, Inc.

AI-generated fair value estimate for this company.

Method: 10-year, 3-stage dividend discount model: $3.80 current annualized dividend; 7% dividend growth years 1-5 (low end of AEP's guided 7-9% operating-EPS growth through 2030); 5% growth years 6-10 as the $78B 2026-2030 capex/rate-base cycle matures; 8.0% cost of equity (low-beta, fully regulated rate-base cash flows); 3.5% terminal growth, PV of dividend stages = $35.16/share + PV of terminal value = $72.47/share ~$107.6/share (rounded to 108).

Reasoning: As a fully regulated, rate-base-driven utility with a well-covered, growing dividend and explicit multi-year EPS/rate-base growth guidance, a multi-stage DDM discounted at a low cost of equity captures AEP's cash-flow character far better than an unlevered FCF DCF or comparable-multiple approach.