American Electric Power (AEP) is gaining market interest following strong earnings, reaffirmed 2026 guidance, and new projects in transmission and data centers. While the company’s valuation aligns closely with analyst consensus for fair value, a discounted cash flow model suggests it might be overvalued. Investors should consider both perspectives, along with execution risks and capital needs, before making investment decisions.
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A Look At American Electric Power (AEP) Valuation After Bullish Guidance And Major Growth Projects
American Electric Power (AEP) is gaining market interest following strong earnings, reaffirmed 2026 guidance, and new projects in transmission and data centers. While the company’s valuation aligns closely with analyst consensus for fair value, a discounted cash flow model suggests it might be overvalued. Investors should consider both perspectives, along with execution risks and capital needs, before making investment decisions.