At this time, the firm appears to be overvalued. American Express shows a prevailing Real Value of $275.71 per share. The current price of the firm is $293.34. Our model approximates the value of American Express from analyzing the firm fundamentals such as return on equity of 0.35, and Profit Margin of 0.17 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting American Express' valuation include:
Price Book
6.8603
Enterprise Value
222 B
Price Sales
3.4168
Forward PE
19.305
Trailing PE
21.1093
Overvalued
Today 293.34
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.
American Express' intrinsic value may or may not be the same as its current market price of 293.34, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical
Market 293.34
Real 275.71
Target 299.75
Hype 292.69
Naive 289.24
The intrinsic value of American Express' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence American Express' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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:
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.
American Express Cash
81.53 Billion
American Valuation Trend
American Express' real value is important for investors to make better decisions and a more accurate overall view of American Express' financial worth over time. Using both American Express' enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
American Revenue by Product
American Express Total Value Analysis
American Express is presently anticipated to have company total value of 222.01 B with market capitalization of 207.62 B, debt of 1.37 B, and cash on hands of 34 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the American Express fundamentals before making security assessment based on enterprise value of the company
About 22.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.86. American Express recorded earning per share (EPS) of 14.0. The entity last dividend was issued on the 3rd of January 2025. The firm had 10000:8753 split on the 3rd of October 2005. Based on the key indicators related to American Express' liquidity, profitability, solvency, and operating efficiency, American Express is performing exceptionally good at the present time. It has a great chance to report excellent financial results in March.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Express has an asset utilization ratio of 18.57 percent. This connotes that the Company is making $0.19 for each dollar of assets. An increasing asset utilization means that American Express is more efficient with each dollar of assets it utilizes for everyday operations.
Oil Shock
Dot-com Bubble
Housing Crash
Credit Downgrade
Yuan Drop
Covid
American Express Ownership Allocation
American Express holds a total of 702.53 Million outstanding shares. Over half of American Express' outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Please note that on September 2, 2024, Representative John James of US Congress acquired under $15k worth of American Express's common stock.
American Express Profitability Analysis
The company reported the last year's revenue of 50.41 B. Total Income to common stockholders was 10.13 B with profit before taxes, overhead, and interest of 39.38 B.
American Express Past Distributions to stockholders
The stock valuation mechanism determines American Express' current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of American Express based exclusively on its fundamental and basic technical indicators. 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, and relevant financial multiples and ratios and then compare them to those of American Express's related companies.
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.
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 Growth Indicators
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.
Common Stock Shares Outstanding
709 M
Quarterly Earnings Growth Y O Y
0.157
Forward Price Earnings
19.305
American Express Current Valuation Indicators
American Express' valuation analysis is 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.
Additional Tools for American Stock Analysis
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 the 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.