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American Express Co Intrinsic Value: Projected FCF

: $171.67 (As of Today)
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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2022-08-10), American Express Co's Intrinsic Value: Projected FCF is $171.67. The stock price of American Express Co is $161.925. Therefore, American Express Co's Price-to-Intrinsic-Value-Projected-FCF of today is 1.0.

The historical rank and industry rank for American Express Co's Intrinsic Value: Projected FCF or its related term are showing as below:

AXP' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.21   Med: 0.79   Max: 2.8
Current: 0.95

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of American Express Co was 2.80. The lowest was 0.21. And the median was 0.79.

AXP's Price-to-Projected-FCF is ranked worse than
57.5% of 280 companies
in the Credit Services industry
Industry Median: 0.73 vs AXP: 0.95

American Express Co Intrinsic Value: Projected FCF Historical Data

The historical data trend for American Express Co's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

American Express Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Intrinsic Value: Projected FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 139.99 137.30 171.56 148.55 159.96

American Express Co Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 149.56 155.65 159.96 164.90 171.67

Competitive Comparison

For the Credit Services subindustry, American Express Co's Intrinsic Value: Projected FCF, along with its competitors' market caps and Intrinsic Value: Projected FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

American Express Co Intrinsic Value: Projected FCF Distribution

For the Credit Services industry and Financial Services sector, American Express Co's Intrinsic Value: Projected FCF distribution charts can be found below:

* The bar in red indicates where American Express Co's Intrinsic Value: Projected FCF falls into.



American Express Co Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get American Express Co's Free Cash Flow(6 year avg) = $9,795.52.

American Express Co's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Jun22)*0.8)/Shares Outstanding (Diluted Average)
=(11.29937129898*9795.52+23235*0.8)/753.000
=171.67

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


American Express Co  (NYSE:AXP) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

American Express Co's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=161.925/171.67492370065
=0.94

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


American Express Co Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of American Express Co's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


American Express Co Business Description

American Express Co logo
Address
200 Vesey Street, New York, NY, USA, 10285
American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. Since 2018, it has operated in three segments: global consumer services, global commercial services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.
Executives
Radhakrishnan Ravikumar officer: Chief Information Officer 200 VESEY STREET NEW YORK NY 10285
Nigro David officer: Chief Risk Officer 200 VESEY STREET NEW YORK NY 10285-5001
Pickrum Lisa W director 5900 RYLAND DRIVE BETHESDA MD 20817
Baltimore Thomas J Jr director PARK HOTELS & RESORTS INC. 1775 TYSONS BLVD, 7TH FLOOR TYSONS VA 22102
Phillips Jr Charles E director 113 WEST 88TH STREET NEW YORK NY 10024
Lieberman Quinn Jessica officer: Controller 200 VESEY STREET NEW YORK NY 10285
Parkhill Karen L director 1717 MAIN STREET, MC 6402 DALLAS TX 75201
Pike Lynn A director 200 VESEY STREET NEW YORK NY 10285
Skyler Jennifer officer: Chief Corp. Affairs Officer 200 VESEY STREET NEW YORK NY 10285
Joabar Raymond officer: CRO and Pres., GRBC 200 VESEY STREET NEW YORK NY 10285
Herena Monique officer: Chief Human Resources Officer 225 LIBERTY STREET NEW YORK NY 10286
Marrs Anna officer: Pres., Global Comm. Services 200 VESEY STREET 01-49-13 NEW YORK NY 10285
Vitale Gabrielle officer: Interim CRO and Pres, GRBC Grp 200 VESEY STREET NEW YORK NY 10285
Petrino Richard officer: EVP - Corporate Controller 200 VESEY STREET NEW YORK NY 10285
Young Christopher David director C/O MICROSOFT CORPORATION ONE MICROSOFT WAY REDMOND WA 98052-6399

American Express Co Headlines

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