American Express Company

NYSE:AXP Stock Report

Market Cap: US$202.1b

American Express Valuation

Is AXP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AXP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AXP ($285.54) is trading below our estimate of fair value ($321.5)

Significantly Below Fair Value: AXP is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AXP?

Key metric: As AXP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AXP. This is calculated by dividing AXP's market cap by their current earnings.
What is AXP's PE Ratio?
PE Ratio20.6x
EarningsUS$9.76b
Market CapUS$202.08b

Price to Earnings Ratio vs Peers

How does AXP's PE Ratio compare to its peers?

The above table shows the PE ratio for AXP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.6x
ALLY Ally Financial
14x28.4%US$11.0b
MA Mastercard
38.9x12.2%US$479.0b
DFS Discover Financial Services
14x3.8%US$44.2b
V Visa
31.4x9.8%US$606.8b
AXP American Express
20.6x7.4%US$202.1b

Price-To-Earnings vs Peers: AXP is good value based on its Price-To-Earnings Ratio (20.6x) compared to the peer average (24.6x).

Price to Earnings Ratio vs Industry

How does AXP's PE Ratio compare vs other companies in the US Consumer Finance Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
YRD Yiren Digital
1.8xn/aUS$507.70m
XYF X Financial
1.7xn/aUS$302.56m
No more companies available in this PE range
AXP 20.6xIndustry Avg. 12.3xNo. of Companies4PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AXP is expensive based on its Price-To-Earnings Ratio (20.6x) compared to the US Consumer Finance industry average (12.3x).

Price to Earnings Ratio vs Fair Ratio

What is AXP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AXP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.6x
Fair PE Ratio23.7x

Price-To-Earnings vs Fair Ratio: AXP is good value based on its Price-To-Earnings Ratio (20.6x) compared to the estimated Fair Price-To-Earnings Ratio (23.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AXP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$285.54
US$274.88
-3.7%
10.4%US$326.00US$230.00n/a24
Nov ’25US$272.69
US$272.84
+0.05%
9.6%US$325.00US$230.00n/a24
Oct ’25US$268.60
US$257.61
-4.1%
9.1%US$300.00US$210.00n/a23
Sep ’25US$258.65
US$253.26
-2.1%
8.8%US$285.00US$210.00n/a23
Aug ’25US$248.68
US$252.65
+1.6%
9.4%US$285.00US$197.00n/a23
Jul ’25US$233.81
US$238.34
+1.9%
10.7%US$275.00US$175.00n/a24
Jun ’25US$240.00
US$236.62
-1.4%
10.8%US$267.06US$175.00n/a21
May ’25US$231.46
US$224.54
-3.0%
16.3%US$267.06US$125.00n/a24
Apr ’25US$227.61
US$209.34
-8.0%
14.6%US$255.00US$125.00n/a24
Mar ’25US$219.66
US$206.40
-6.0%
13.5%US$240.00US$125.00n/a25
Feb ’25US$203.22
US$202.88
-0.2%
12.9%US$240.00US$125.00n/a26
Jan ’25US$187.34
US$176.84
-5.6%
12.1%US$228.00US$125.00n/a25
Dec ’24US$173.76
US$171.92
-1.1%
10.3%US$201.00US$125.00n/a24
Nov ’24US$146.45
US$171.13
+16.9%
10.4%US$201.00US$125.00US$272.6923
Oct ’24US$149.19
US$179.86
+20.6%
11.2%US$203.00US$125.00US$268.6021
Sep ’24US$159.62
US$179.67
+12.6%
11.2%US$203.00US$125.00US$258.6521
Aug ’24US$169.65
US$180.09
+6.2%
11.5%US$206.00US$125.00US$248.6822
Jul ’24US$174.20
US$177.92
+2.1%
10.9%US$206.00US$125.25US$233.8122
Jun ’24US$162.72
US$175.56
+7.9%
10.8%US$205.00US$125.25US$240.0022
May ’24US$159.32
US$179.86
+12.9%
8.7%US$205.00US$146.00US$231.4622
Apr ’24US$164.95
US$182.52
+10.7%
8.9%US$205.00US$149.00US$227.6121
Mar ’24US$175.91
US$182.38
+3.7%
9.0%US$205.00US$149.00US$219.6621
Feb ’24US$173.61
US$179.33
+3.3%
9.2%US$205.00US$149.00US$203.2221
Jan ’24US$147.75
US$162.57
+10.0%
10.9%US$201.00US$128.00US$187.3421
Dec ’23US$157.50
US$161.95
+2.8%
10.9%US$201.00US$128.00US$173.7620
Nov ’23US$147.08
US$161.42
+9.8%
10.8%US$201.00US$128.00US$146.4519

Analyst Forecast: Target price is lower than the current share price.

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