AEP (American Electric Power Co) ROCE %: 5.72% (As of Mar. 2026)


AEP American Electric Power Co Inc AEP
78 GF Score
Price $134.95
GF Value $110.98
Valuation Modestly Overvalued
! 10 Warning Signs
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What is American Electric Power Co ROCE %?

American Electric Power Co AEP +0.90% 78 ROCE % is 5.72% as of Mar. 2026. GuruFocus rates AEP with a GF Score™ of 78/100 and a GF Value™ of $110.98 (Modestly Overvalued). The stock has 10 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. American Electric Power Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 5.72%.

American Electric Power Co  (NAS:AEP) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

American Electric Power Co ROCE % Related Terms

American Electric Power Co ROCE % Historical Data

* Premium members only.

The historical data trend for American Electric Power Co's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

American Electric Power Co ROCE % Chart

American Electric Power Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.08 4.91 4.86 5.37 6.01

American Electric Power Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.14 6.46 6.62 4.90 5.72
AEP
78GF Score
American Electric Power Co Inc AEP
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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American Electric Power Co ROCE % Calculation

American Electric Power Co's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=5750/( ( (103078 - 13009) + (114460 - 13314) )/ 2 )
=5750/( (90069+101146)/ 2 )
=5750/95607.5
=6.01 %

American Electric Power Co's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=5896/( ( (114460 - 13314) + (117776 - 12594) )/ 2 )
=5896/( ( 101146 + 105182 )/ 2 )
=5896/103164
=5.72 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 5.72% mean?
American Electric Power Co (AEP) has a ROCE % of 5.72% as of Mar. 2026.
Is American Electric Power Co's ROCE % too high?
American Electric Power Co's current ROCE % is 5.72%. The Utilities - Regulated industry median ROCE % is 6.95. American Electric Power Co's value of 5.72% is 17.7% below this industry median. Overall, American Electric Power Co has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Electric Power Co's ROCE % compare to D and ETR?
American Electric Power Co's ROCE % of 5.72% can be compared against companies in the Utilities - Regulated industry. The industry median ROCE % is 6.95. American Electric Power Co's value of 5.72% is 17.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Utilities - Regulated company?
The median ROCE % among Utilities - Regulated companies is 6.95, based on 505 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Electric Power Co's current ROCE % of 5.72% is 17.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Regulated industry, the median ROCE % is 6.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Electric Power Co's current ROCE % is 5.72%. 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 $134.95 — trading 21.6% above its estimated fair value. The current ROCE % is 5.72% and 17.7% below the Utilities - Regulated industry median of 6.95. American Electric Power Co's overall GF Score™ is 78/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For American Electric Power Co (AEP), the current ROCE % is 5.72% as of Mar. 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 $134.95 is trading 21.6% above its estimated GF Value™ of $110.98. GuruFocus considers American Electric Power Co to be Modestly Overvalued.

Key valuation signals for AEP:

  • ROCE %: 5.72%
  • GF Value™: $110.98 vs. price of $134.95 (21.6% above fair value)
  • GF Score™: 78/100 with 10 warning signs
  • Industry Position: 17.7% below the Utilities - Regulated median

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.
78GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$134.95
Price
$110.98
GF Value