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American Express Co Peter Lynch Fair Value

: $65.53 (As of Today)
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Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, American Express Co's PEG is 1. American Express Co's 5-Year Book Value Growth Rate is 6.54. American Express Co's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $10.02. Therefore, the Peter Lynch Fair Value for today is $65.53.

As of today (2022-08-12), American Express Co's share price is $162.99. American Express Co's Peter Lynch fair value is $65.53. Therefore, American Express Co's Price to Peter Lynch Fair Value Ratio for today is 2.49.


The historical rank and industry rank for American Express Co's Peter Lynch Fair Value or its related term are showing as below:

AXP' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.91   Med: 1.92   Max: 5.61
Current: 2.6


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of American Express Co was 5.61. The lowest was 0.91. And the median was 1.92.


AXP's Price-to-Peter-Lynch-Fair-Value is ranked worse than
85.43% of 151 companies
in the Credit Services industry
Industry Median: 0.82 vs AXP: 2.60

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


American Express Co Peter Lynch Fair Value Historical Data

The historical data trend for American Express Co's Peter Lynch Fair Value 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
Peter Lynch Fair Value
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.89 45.50 48.52 21.54 66.23

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
Peter Lynch Fair Value 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 55.47 64.79 66.23 63.77 62.60

Competitive Comparison

For the Credit Services subindustry, American Express Co's Peter Lynch Fair Value, along with its competitors' market caps and Peter Lynch Fair Value 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 Peter Lynch Fair Value Distribution

For the Credit Services industry and Financial Services sector, American Express Co's Peter Lynch Fair Value distribution charts can be found below:

* The bar in red indicates where American Express Co's Peter Lynch Fair Value falls into.



American Express Co Peter Lynch Fair Value Calculation

American Express Co's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year Book Value Growth Rate*EPS without NRI (TTM)
=1* 6.54 *10.02
=65.53

American Express Co's EPS without NRI for the trailing twelve months (TTM) uses the latest annual data, which was $10.02.

* Note that for companies that do not have enough quarterly data to calculate the 5-Year EBITDA Growth Rate, we use the annual data for the calculation.


* 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.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


American Express Co  (NYSE:AXP) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of Book Value per share over the past 5 years, which is 6.54 instead of 15 in this case.

American Express Co's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=162.99/65.53
=2.49

* 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 Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of American Express Co's Peter Lynch Fair Value 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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