45.57 (1y: +14%)

Market Cap	22.29 B	P/E(ttm)	18.00
Enterprise Value	40.76 B	P/B	1.50

AEP- NYSE (USA)
American Electric Power Co Inc

Currently 1/5

Business Predictability Rank: 1-Star (On Watch)
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
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$45.57

1 Severe Warning Sign 2 Medium Warning Signs

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American Electric Power Co Inc Peter Lynch Fair Value: 0.0 ( as of Mar13)

* All numbers are in millions except for per share data AEP 10-Y Financials »

Annual Data Quarterly Data

Definition

Peter Lynch Fair Value is calculated as follows:

Peter Lynch Fair Value = PEG * 5-Year EBITDA Growth Rate * Earnings per Share

If 5-Year Earnings Growth Rate is greater than 20% a year, we use 20.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate. EBITDA growth is subject to less manipulations than net earnings per share. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.

Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. The growth rate we use is the average growth rate for earnings per share over the past 5 years.