American Electric Power Stock Market Value

AEP Stock  USD 82.16  0.05  0.06%   
American Electric's market value is the price at which a share of American Electric stock trades on a public exchange. It measures the collective expectations of American Electric Power investors about the entity's future performance. With this module, you can estimate the performance of a buy and hold strategy of American Electric Power and determine expected loss or profit from investing in American Electric over a given investment horizon.
Check out American Electric Correlation, American Electric Volatility and American Electric Alpha and Beta module to complement your research on American Electric.
Symbol

American Electric Power Price To Book Ratio

Is American Electric's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Electric. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.15)
Dividend Share
3.37
Earnings Share
4.24
Revenue Per Share
36.582
Quarterly Revenue Growth
(0.06)
The market value of American Electric Power is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Electric's value that differs from its market value or its book value, called intrinsic value, which is American Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Electric's market value can be influenced by many factors that don't directly affect American Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

American Electric 'What if' Analysis

In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to American Electric's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of American Electric.
0.00
01/19/2024
No Change 0.00  0.0 
In 2 months and 1 day
03/19/2024
0.00
If you would invest  0.00  in American Electric on January 19, 2024 and sell it all today you would earn a total of 0.00 from holding American Electric Power or generate 0.0% return on investment in American Electric over 60 days. American Electric is related to or competes with Dominion Energy, Consolidated Edison, Consumers Energy, CMS Energy, and Vast Renewables. American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmissi... More

American Electric Upside/Downside Indicators

Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure American Electric's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess American Electric Power upside and downside potential and time the market with a certain degree of confidence.

American Electric Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for American Electric's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as American Electric's standard deviation. In reality, there are many statistical measures that can use American Electric historical prices to predict the future American Electric's volatility.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of American Electric's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of American Electric in the context of predictive analytics.
Hype
Prediction
LowEstimatedHigh
80.8782.1583.43
Details
Intrinsic
Valuation
LowRealHigh
73.9485.7687.04
Details
Naive
Forecast
LowNextHigh
78.1379.4180.68
Details
20 Analysts
Consensus
LowTargetHigh
82.0590.17100.09
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as American Electric. Your research has to be compared to or analyzed against American Electric's peers to derive any actionable benefits. When done correctly, American Electric's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in American Electric Power.

American Electric Power Backtested Returns

We consider American Electric very steady. American Electric Power secures Sharpe Ratio (or Efficiency) of 0.0507, which signifies that the company had 0.0507% return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-nine technical indicators for American Electric Power, which you can use to evaluate the future volatility of the firm. Please confirm American Electric's mean deviation of 0.9821, and Risk Adjusted Performance of 0.0362 to double-check if the risk estimate we provide is consistent with the expected return of 0.0647%. American Electric has a performance score of 3 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.89, which signifies possible diversification benefits within a given portfolio. American Electric returns are very sensitive to returns on the market. As the market goes up or down, American Electric is expected to follow. Although it is important to respect American Electric Power historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. American Electric Power right now shows a risk of 1.28%. Please confirm American Electric Power potential upside, rate of daily change, and the relationship between the sortino ratio and skewness to decide if American Electric Power will be following its price patterns.

Auto-correlation

    
  -0.16  

Insignificant reverse predictability

American Electric Power has insignificant reverse predictability. Overlapping area represents the amount of predictability between American Electric time series from 19th of January 2024 to 18th of February 2024 and 18th of February 2024 to 19th of March 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of American Electric Power price movement. The serial correlation of -0.16 indicates that over 16.0% of current American Electric price fluctuation can be explain by its past prices.
Correlation Coefficient-0.16
Spearman Rank Test-0.34
Residual Average0.0
Price Variance1.58

American Electric Power lagged returns against current returns

Autocorrelation, which is American Electric stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting American Electric's stock expected returns. We can calculate the autocorrelation of American Electric returns to help us make a trade decision. For example, suppose you find that American Electric stock has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the stock movement to match the lagging time series.
   Current and Lagged Values   
       Timeline  

American Electric regressed lagged prices vs. current prices

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If American Electric stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if American Electric stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in American Electric stock over time.
   Current vs Lagged Prices   
       Timeline  

American Electric Lagged Returns

When evaluating American Electric's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of American Electric stock have on its future price. American Electric autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, American Electric autocorrelation shows the relationship between American Electric stock current value and its past values and can show if there is a momentum factor associated with investing in American Electric Power.
   Regressed Prices   
       Timeline  

American Electric Investors Sentiment

The influence of American Electric's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in American. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to American Electric's public news can be used to forecast risks associated with an investment in American. The trend in average sentiment can be used to explain how an investor holding American can time the market purely based on public headlines and social activities around American Electric Power. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
American Electric's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for American Electric's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average American Electric's news discussions. The higher the estimated score, the more favorable is the investor's outlook on American Electric.

American Electric Implied Volatility

    
  40.41  
American Electric's implied volatility exposes the market's sentiment of American Electric Power stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if American Electric's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that American Electric stock will not fluctuate a lot when American Electric's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards American Electric in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, American Electric's short interest history, or implied volatility extrapolated from American Electric options trading.

Pair Trading with American Electric

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Electric position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Electric will appreciate offsetting losses from the drop in the long position's value.

Moving together with American Stock

  0.77D Dominion Energy Financial Report 3rd of May 2024 PairCorr
  0.73ES Eversource Energy Financial Report 1st of May 2024 PairCorr
  0.63FE FirstEnergy Financial Report 25th of April 2024 PairCorr

Moving against American Stock

  0.48EDN Empresa Distribuidora Upward RallyPairCorr
The ability to find closely correlated positions to American Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Electric when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Electric - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Electric Power to buy it.
The correlation of American Electric is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Electric Power moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Electric can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether American Electric Power is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Electric Power Stock. Highlighted below are key reports to facilitate an investment decision about American Electric Power Stock:
Check out American Electric Correlation, American Electric Volatility and American Electric Alpha and Beta module to complement your research on American Electric.
Note that the American Electric Power information on this page should be used as a complementary analysis to other American Electric's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Complementary Tools for American Stock analysis

When running American Electric's price analysis, check to measure American Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Electric is operating at the current time. Most of American Electric's value examination focuses on studying past and present price action to predict the probability of American Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Electric's price. Additionally, you may evaluate how the addition of American Electric to your portfolios can decrease your overall portfolio volatility.
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American Electric technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of American Electric technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of American Electric trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...