American Express Co (NYSE:AXP) GF Value Rank

: 7 (As of Today)

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American Express Co has the GF Value Rank of 7.

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

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.

Annual Data Quarterly Data

American Express Co GF Value Rank Distribution

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 in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

American Express Co GF Value Rank Related Terms

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American Express Co (NYSE:AXP) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

AXP:Mexico 0R3C:UK AEC1:Germany AXP:Chile AXPB34:Brazil 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.

Executives

Rafael Marquez	officer: President, International Card	200 VESEY STREET, NEW YORK NY 10285
Howard Grosfield	officer: President, U.S. Consumer Serv	200 VESEY STREET, NEW YORK NY 10285
Deborah P Majoras	director	ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Clayton Walter Joseph Iii	director	C/O APOLLO GLOBAL MANAGEMENT, INC., 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Ravikumar Radhakrishnan	officer: Chief Information Officer	200 VESEY STREET, NEW YORK NY 10285
David Nigro	officer: Chief Risk Officer	200 VESEY STREET, NEW YORK NY 10285-5001
Lisa W Wardell	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
Quinn Jessica Lieberman	officer: Controller	200 VESEY STREET, NEW YORK NY 10285
Karen L Parkhill	director	1717 MAIN STREET, MC 6402, DALLAS TX 75201
Lynn A Pike	director	200 VESEY STREET, NEW YORK NY 10285
Jennifer Skyler	officer: Chief Corp. Affairs Officer	200 VESEY STREET, NEW YORK NY 10285
Raymond Joabar	officer: CRO and Pres., GRBC	200 VESEY STREET, NEW YORK NY 10285
Monique Herena	officer: Chief Human Resources Officer	225 LIBERTY STREET, NEW YORK NY 10286