American Express Co (BSP:AXPB34) GF Value Rank : 3 (As of Dec. 15, 2024)

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What is American Express Co GF Value Rank?

American Express Co has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of American Express Co's GF Value Rank

For the Credit Services subindustry, American Express Co's GF Value Rank, along with its competitors' market caps and GF Value Rank 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's GF Value Rank Distribution in the Credit Services Industry

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

* The bar in red indicates where American Express Co's GF Value Rank falls into.

American Express Co GF Value Rank Related Terms

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American Express Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » American Express Co (BSP:AXPB34) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AXP:USA AXP:Peru AXP:Mexico 1AXP:Italy AEC1d:UK 0R3C:UK AEC1:Germany AEC1:Germany AEC1:Germany AEC1:Germany AXP:Canada AXP:Austria AXP:Argentina

Address

200 Vesey Street, New York, NY, USA, 10285

Website

https://www.americanexpress.com

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.

American Express Co Headlines

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