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How’s AES Stock Valued Compared to Its Peers?

How’s AES Stock Valued Compared to Its Peers?

AES (AES) stock appears to be trading at a premium valuation compared to its historical valuation multiple. On May 7, AES stock was trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation multiple of 8.7x. AES’s five-year historical EV-to-EBITDA multiple is close to 8x.