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Is AEP Overvalued Compared to Its Peers?

Is AEP Overvalued Compared to Its Peers?

American Electric Power Company’s (AEP) EV-to-EBITDA multiple is 11.1x. The company’s five-year average EV-to-EBITDA multiple is 9.6x. Currently, American Electric Power is trading at a premium of 15.6% to its historical average.