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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.


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

American Express Co logo
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.
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

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