Intrinsic Valuation of: AEP
Free Cash Flow Average and Growth over past 5Y Key Statistics
Year FCF FCF (FCF/Revenue)
2020 - - EPS (FY) 7 Market Cap $68B
2021 - - (-) P/E Ratio 19 Total Asset $114B
2022 $-1B - (-) Net Income $4B Total Debt $44B
2023 $-2B -68.0% (-73.8%) EBITDA $9B Total Liab $82B
2024 $-967M 61.2% (62.7%) Opr Margin 24.62 Debt/Equity 1.37
2025 $-2B -69.5% (-52.8%) PreTax Margin 15.35 BV/Share 57
5Y Average FCF $-2B -2.0% (-21.3%)
Overall Market Assumptions:
Assumptions: P/E for No-Growth Company: 7.0
Perpetual Growth Rate (g): 1.00% Historical US Bond Yield: 4.40%
Discount Rate (WACC): 7.00% Current US Bond Yield: 3.48%
Forcasting Future Free Cash Flow for next 6Y Modified Benjamin Graham's Intrinsic Value
Year FCF Projection (-2.0%)
2026 $0 MBG Intrinsic Value $60
2027 $0
2028 $0
2029 $0
2030 $0
2031 $0
Terminal Value $0 Net Worth/Share $59
DCF Valuation DCF Valuation "What If" Scenario Table
Enterprise Value $0 Growth Rate
(+) Cash & Cash Equivalents $197M $-81 1.0% 1.2% 1.5% 1.8% 2.0%
(-) Total Debt $44B WACC 6.5% -81 -81 -81 -81 -81
Equity Value $-44B 7.1% -81 -81 -81 -81 -81
Shares Outstanding 544,105,032 7.8% -81 -81 -81 -81 -81
8.4% -81 -81 -81 -81 -81
DCF Intrinsic Value $-81 9.0% -81 -81 -81 -81 -81
Analyzed by QuantJuice (2025)