AEP (American Electric Power Co) Moat Score: 8/10 (As of Jun. 29, 2026)


AEP American Electric Power Co Inc AEP
75 GF Score
Price $138.25
GF Value $110.98
Valuation Modestly Overvalued
! 10 Warning Signs
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What is American Electric Power Co Moat Score?

American Electric Power Co AEP -0.32% 75 Moat Score is 8 as of Jun. 29, 2026. GuruFocus rates AEP with a GF Score™ of 75/100 and a GF Value™ of $110.98 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 548 Utilities - Regulated companies, American Electric Power Co ranks better than 99.82% on this metric.

American Electric Power Co has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

American Electric Power Co has Wide Moat: AEP has a clear and robust wide moat with significant regulatory barriers, economies of scale, and strong pricing power in the utility sector. Its extensive distribution network and customer loyalty further solidify its durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes American Electric Power Co might have Wide Moat - Clear and robust wide moat.

American Electric Power Co  (NAS:AEP) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

American Electric Power Co Moat Score Related Terms

AEP vs D, ETR, XEL: Moat Score Comparison

For the Utilities - Regulated Electric subindustry, American Electric Power Co's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

American Electric Power Co Moat Score vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, American Electric Power Co's Moat Score distribution charts can be found below:

* The bar in red indicates where American Electric Power Co's Moat Score falls into.


AEP
75GF Score
American Electric Power Co Inc AEP
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 8 mean?
American Electric Power Co (AEP) has a Moat Score of 8 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, American Electric Power Co ranks #1 out of 548 companies in the Utilities - Regulated industry, placing it in the top 0.2%.
Is American Electric Power Co's Moat Score too high?
American Electric Power Co's current Moat Score is 8. Based on the distribution chart, American Electric Power Co ranks #1 out of 548 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, American Electric Power Co has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Electric Power Co's Moat Score compare to D and ETR?
According to the Utilities - Regulated industry distribution chart, American Electric Power Co ranks #1 out of 548 companies for Moat Score. This places American Electric Power Co in the top 0% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Utilities - Regulated company?
A good Moat Score depends on the Utilities - Regulated industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. American Electric Power Co's current Moat Score is 8. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Electric Power Co stock overvalued right now?
Based on GuruFocus' analysis, American Electric Power Co (AEP) is currently considered Modestly Overvalued. The stock's GF Value™ is $110.98, compared to a current price of $138.25 — trading 24.6% above its estimated fair value. The current Moat Score is 8. American Electric Power Co's overall GF Score™ is 75/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For American Electric Power Co (AEP), the current Moat Score is 8 as of Jun. 29, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is American Electric Power Co (AEP) Overvalued in 2026?

Based on GuruFocus' analysis, American Electric Power Co stock appears to be overvalued. The current stock price of $138.25 is trading 24.6% above its estimated GF Value™ of $110.98. GuruFocus considers American Electric Power Co to be Modestly Overvalued.

Key valuation signals for AEP:

  • Moat Score: 8
  • GF Value™: $110.98 vs. price of $138.25 (24.6% above fair value)
  • GF Score™: 75/100 with 10 warning signs

No single metric tells the full story. See the AEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

American Electric Power Co Business Description

Address 1 Riverside Plaza, Columbus, OH, USA, 43215-2373
American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states. About 39% of AEP's capacity is coal, with the remainder from a mix of natural gas (28%), renewable energy and hydro (23%), nuclear (7%), and demand response (3%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.
75GF Score

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$138.25
Price
$110.98
GF Value