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AEP (American Electric Power Co) Earnings Yield (Joel Greenblatt) % : 4.73% (As of Jun. 2024)


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What is American Electric Power Co Earnings Yield (Joel Greenblatt) %?

American Electric Power Co's Enterprise Value for the quarter that ended in Jun. 2024 was $90,626 Mil. American Electric Power Co's EBIT for the trailing twelve months (TTM) ended in Jun. 2024 was $4,289 Mil. American Electric Power Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2024 was 4.73%.

The historical rank and industry rank for American Electric Power Co's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

AEP' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.38   Med: 4.51   Max: 7.56
Current: 4.48

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of American Electric Power Co was 7.56%. The lowest was 2.38%. And the median was 4.51%.

AEP's Earnings Yield (Joel Greenblatt) % is ranked worse than
69.92% of 512 companies
in the Utilities - Regulated industry
Industry Median: 6.31 vs AEP: 4.48

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. American Electric Power Co's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2024 was 0.91%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


American Electric Power Co Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for American Electric Power Co's Earnings Yield (Joel Greenblatt) % 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.

* Premium members only.

American Electric Power Co Earnings Yield (Joel Greenblatt) % Chart

American Electric Power Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.77 4.39 4.57 4.24 4.68

American Electric Power Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Earnings Yield (Joel Greenblatt) % 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 3.96 4.80 4.68 5.03 4.73

Competitive Comparison of American Electric Power Co's Earnings Yield (Joel Greenblatt) %

For the Utilities - Regulated Electric subindustry, American Electric Power Co's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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's Earnings Yield (Joel Greenblatt) % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, American Electric Power Co's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where American Electric Power Co's Earnings Yield (Joel Greenblatt) % falls into.



American Electric Power Co Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

American Electric Power Cos Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=4015.6/85840.0457
=4.68 %

American Electric Power Co's EBIT for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,289 Mil.



American Electric Power Co  (NAS:AEP) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


American Electric Power Co Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of American Electric Power Co's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


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 42% of AEP's of capacity is coal, with the remainder from a mix of natural gas (27%), renewable energy and hydro (21%), nuclear (8%), and demand response (2%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.
Executives
Antonio P Smyth officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Greg B Hall officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Daniel G. Stoddard director 5000 DOMINION BOULEVARD, GLEN ALLEN VA 23060
Kate Sturgess officer: Controller, CAO 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
David Matthew Feinberg officer: Senior Vice President C/O ALLEGHENY ENERGY, INC., 800 CABIN HILL DRIVE, GREENSBURG PA 15601
Christian T Beam officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Nicholas K Akins officer: Executive Vice President AMERICAN ELECTRIC POWER COMPANY, INC., 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Ann P Kelly officer: Executive Vice President & CFO 460 NORTH GULPH ROAD, KING OF PRUSSIA PA 19406
Peggy Simmons officer: Executive Vice President 212 E 6TH ST, TULSA OK 74119
Raja Sundararajan officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Donna James director ONE MIRANOVA PLACE, SUITE 1040, COLUMBUS OH 43215
Therace Risch officer: Senior Vice President 6501 LEGACY DRIVE, PLANO TX 75024
Charles E Zebula officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Paul Iii Chodak officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Julia A Sloat officer: Executive VP, CFO 1 RIVERSIDE PLAZA, COLUMBUS OH 43215