AESCAUTIOUS

AES P/E Ratio Analysis

7.7x

Higher than 13% of Utilities sector peers

Updated 2769h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 7.7x means investors are paying $7.70 for every $1.00 of the company’s annual earnings — a low multiple that often suggests the stock is undervalued relative to its earnings.

Sector Performance

13th percentile

AES

7.7x

Sector Median

20.2x

Sector Avg

16.9x

Prior Period

11.4x(Apr 2026)

↑ Improving

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Deep Analysis

The P/E ratio of 7.7x means investors are paying $7.70 for every $1.00 of the company’s annual earnings — a low multiple that often suggests the stock is undervalued relative to its earnings.

Compared to sector peers, the median P/E in Utilities is 20.2x, placing AES in the 10th percentile, far cheaper than most competitors. The trend is unavailable due to a single data point; the year-over-year and quarter-over-quarter changes are both marked as N/A, so no direction can be inferred. The combination of a very low P/E (value signal) with no trend history creates ambiguity — the low level may represent a buying opportunity or could reflect unresolved risks that have depressed the valuation. This metric does not contradict the overall CAUTIOUS verdict: while a low P/E can be attractive, the absence of trend data means there is no evidence of improvement or stability, reinforcing the need for caution.

Frequently Asked Questions

What does the P/E Ratio tell investors about AES?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does AES's P/E Ratio compare to its sector?

AES's P/E Ratio of 7.7x compares to a Utilities sector median of 20.2x, placing it in the 13th percentile.

Who are AES's closest peers by P/E Ratio?

The closest Utilities peers by P/E Ratio include: AEP (20.2x), PEG (20.2x), AEE (20.5x), PNW (19.0x), ATO (23.2x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.