American Stock Valuation

AXP
 Stock
  

USD 165.84  2.85  1.75%   

What is the intrinsic value of American stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as American Express, is its stock price multiplied by the total number of shares outstanding, calculating American Express' enterprise value requires a different approach. It uses American Express' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
American Express Enterprise Value is very stable at the moment as compared to the past year. American Express reported last year Enterprise Value of 135.54 Billion. As of 13th of August 2022, Tangible Asset Value is likely to grow to about 198.6 B, while Free Cash Flow is likely to drop about 12 B.
American Express shows a prevailing Real Value of $175.02 per share. The current price of the firm is $165.84. At this time, the firm appears to be undervalued. Our model approximates the value of American Express from analyzing the firm fundamentals such as profit margin of 15.86 %, and Return On Equity of 31.20 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
American Express Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as American Express's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

American Most Recent Valuation Data

Price Book
5.24
EPS Estimate Next Quarter
2.39
Price Sales
2.59
Forward Annual Dividend Yield
0.0128
Dividend Share
1.9
Ex Dividend Date
2022-06-30
Beta
1.15
Undervalued
Today 165.84
Please note that American Express' price fluctuation is very steady at this time. Calculation of the real value of American Express is based on 3 months time horizon. Increasing American Express' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for American Express is useful when determining the fair value of the American stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Express. Since American Express is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Express' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
149.26
Downside
175.02
Real Value
177.22
Upside
Estimating the potential upside or downside of American Express helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Express more accurately as focusing exclusively on American Express' fundamentals will not take into account other important factors:
Earnings
Estimates (16)
LowProjected EPSHigh
9.309.579.83
Details
Hype
Prediction
LowEstimated ValueHigh
163.64165.84168.04
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.331.351.37
Details
18 Analysts
Consensus
LowTarget PriceHigh
151.00190.75233.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use American Express' intrinsic value based on its ongoing forecasts of American Express' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American Express' closest peers. When choosing an evaluation method for American Express, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

American Express Investments

93.94 Billion

American Valuation Drivers Correlation

Many accounts on the financial statements of American Express are highly interrelated and sometimes correlated. Consequently, when conducting American's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of American
Click cells to compare fundamentals

American Valuation Trend

Knowing American Express' actual value is paramount for traders to make sound investment determinations. American Express' real value is not only important for the investor to make better decisions but also for a more accurate overall view of American Express' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both American Express' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

American Market Cap

American Express is number one stock in market capitalization category among related companies. Market capitalization of Credit Services industry is presently estimated at about 3.66 Trillion. American Express holds roughly 117.92 Billion in market capitalization claiming about 3% of stocks in Credit Services industry.
Capitalization  Workforce  Valuation  Total debt  Revenue

American Express Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining American Express's current stock value. Our valuation model uses many indicators to compare American Express value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Express competition to find correlations between indicators driving American Express's intrinsic value. More Info.
American Express is number one stock in five year return category among related companies. It is number one stock in price to earning category among related companies reporting about  12.00  of Price to Earning per Five Year Return. As of 13th of August 2022, Price to Earnings Ratio is likely to grow to 18.96, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop about 11.7 B.. Comparative valuation analysis is a catch-all model that can be used if you cannot value American Express by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Express' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Express' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates American Express' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in American Express and how it compares across the competition.

About American Express Valuation

The equity valuation mechanism determines the current worth of American Express on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of American Express. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Express based exclusively on its fundamental and basic technical indicators. By analyzing American Express's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of American Express's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Express. We calculate exposure to American Express's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Express's related companies.
Fiscal Year End
December
Industry
Credit Services
Concentration
Consumer Finance
Full Time Employees
64 K
Service Category
Consumer Finance
Employer Id Number
13-4922250
Last ReportedProjected for 2022
Gross Profit43.8 B42.6 B
Profit Margin 0.18  0.17 
American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide. American Express Company was founded in 1850 and is headquartered in New York, New York. American Express operates under Credit Services classification in the United States and is traded on New York Stock Exchange. It employs 64000 people.

American Express Quarterly Enterprise Value

117.17 Billion

American Express' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether American Express' value is low or high relative to the company's performance and growth projections. Determining the market value of American Express can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of American Express represents a small ownership stake in the entity. As a stockholder of American, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

American Express Dividends Analysis For Valuation

As of 13th of August 2022, Dividend Yield is likely to grow to 0.0114, while Payment of Dividends and Other Cash Distributions is likely to drop (1.6 B). . As of 13th of August 2022, Price to Earnings Ratio is likely to grow to 18.96, while Accumulated Retained Earnings Deficit are likely to drop about 13.1 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-1.4 B-1.6 B
Dividend Yield 0.011  0.0114 
Dividends per Basic Common Share 1.98  1.75 
There are various types of dividends American Express can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of American shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from American Express directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When American pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of American Express by the value of the dividends paid out.

American Express Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as American Express does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.62
Earnings Quarterly Growth-13.90%
Revenue Growth19.70%
Payout Ratio19.43%
Earnings Growth-8.20%
Enterprise Value To Revenue2.82

American Express Current Valuation Indicators

Valuation refers to the process of determining the present value of American Express and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value American we look at many different elements of the entity such as American's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. American Express' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final American Express' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as American Express, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use American Express' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes American Express' worth.
Please continue to Trending Equities. Note that the American Express information on this page should be used as a complementary analysis to other American Express' 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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When running American Express price analysis, check to measure American Express' 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 Express is operating at the current time. Most of American Express' value examination focuses on studying past and present price action to predict the probability of American Express' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Express' price. Additionally, you may evaluate how the addition of American Express to your portfolios can decrease your overall portfolio volatility.
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Is American Express' 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 Express. 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 Express 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 YOY
-0.082
Market Capitalization
124.3 B
Quarterly Revenue Growth YOY
0.2
Return On Assets
0.0388
Return On Equity
0.31
The market value of American Express 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 Express' value that differs from its market value or its book value, called intrinsic value, which is American Express' 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 Express' market value can be influenced by many factors that don't directly affect American Express' 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 Express' value and its price as these two are different measures arrived at by different means. Investors typically determine American Express value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Express' 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.