AXP Relative Valuation
AXP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AXP is overvalued; if below, it's undervalued.
Historical Valuation
American Express Co (AXP) is now in the Overvalued zone, suggesting that its current forward PE ratio of 22.38 is considered Overvalued compared with the five-year average of 17.40. The fair price of American Express Co (AXP) is between 289.26 to 369.27 according to relative valuation methord. Compared to the current price of 381.70 USD , American Express Co is Overvalued By 3.37%.
Relative Value
Fair Zone
289.26-369.27
Current Price：381.70
3.37%
Overvalued
22.38
PE
1Y
3Y
5Y
0.00
EV/EBITDA
American Express Co. (AXP) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.
NaN
EV/EBIT
American Express Co. (AXP) has a current EV/EBIT of NaN. The 5-year average EV/EBIT is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBIT of NaN falls within the range.
3.34
PS
American Express Co. (AXP) has a current PS of 3.34. The 5-year average PS is 2.51. The thresholds are as follows: Strongly Undervalued below 1.58, Undervalued between 1.58 and 2.04, Fairly Valued between 2.97 and 2.04, Overvalued between 2.97 and 3.44, and Strongly Overvalued above 3.44. The current Forward PS of 3.34 falls within the Overvalued range.
0.00
P/OCF
American Express Co. (AXP) has a current P/OCF of 0.00. The 5-year average P/OCF is 4.00. The thresholds are as follows: Strongly Undervalued below -8.42, Undervalued between -8.42 and -2.21, Fairly Valued between 10.21 and -2.21, Overvalued between 10.21 and 16.42, and Strongly Overvalued above 16.42. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.
22.25
P/FCF
American Express Co. (AXP) has a current P/FCF of 22.25. The 5-year average P/FCF is 4.40. The thresholds are as follows: Strongly Undervalued below -10.22, Undervalued between -10.22 and -2.91, Fairly Valued between 11.71 and -2.91, Overvalued between 11.71 and 19.03, and Strongly Overvalued above 19.03. The current Forward P/FCF of 22.25 falls within the Strongly Overvalued range.
American Express Co (AXP) has a current Price-to-Book (P/B) ratio of 7.92. Compared to its 3-year average P/B ratio of 5.84 , the current P/B ratio is approximately 35.56% higher. Relative to its 5-year average P/B ratio of 5.59, the current P/B ratio is about 41.78% higher. American Express Co (AXP) has a Forward Free Cash Flow (FCF) yield of approximately 7.38%. Compared to its 3-year average FCF yield of 10.37%, the current FCF yield is approximately -28.87% lower. Relative to its 5-year average FCF yield of 10.06% , the current FCF yield is about -26.69% lower.
7.92
P/B
Median3y
5.84
Median5y
5.59
7.38
FCF Yield
Median3y
10.37
Median5y
10.06
Competitors Valuation Multiple
The average P/S ratio for AXP's competitors is 4.23, providing a benchmark for relative valuation. American Express Co Corp (AXP) exhibits a P/S ratio of 3.34, which is -21.06% above the industry average. Given its robust revenue growth of 7.90%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AXP increased by 19.64% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 13.46B to 14.52B.
The secondary factor is the Margin Expansion, contributed 7.30%to the performance.
Overall, the performance of AXP in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is American Express Co (AXP) currently overvalued or undervalued?
American Express Co (AXP) is now in the Overvalued zone, suggesting that its current forward PE ratio of 22.38 is considered Overvalued compared with the five-year average of 17.40. The fair price of American Express Co (AXP) is between 289.26 to 369.27 according to relative valuation methord. Compared to the current price of 381.70 USD , American Express Co is Overvalued By 3.37% .
What is American Express Co (AXP) fair value?
AXP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of American Express Co (AXP) is between 289.26 to 369.27 according to relative valuation methord.
How does AXP's valuation metrics compare to the industry average?
The average P/S ratio for AXP's competitors is 4.23, providing a benchmark for relative valuation. American Express Co Corp (AXP) exhibits a P/S ratio of 3.34, which is -21.06% above the industry average. Given its robust revenue growth of 7.90%, this premium appears unsustainable.
What is the current P/B ratio for American Express Co (AXP) as of Jan 06 2026?
As of Jan 06 2026, American Express Co (AXP) has a P/B ratio of 7.92. This indicates that the market values AXP at 7.92 times its book value.
What is the current FCF Yield for American Express Co (AXP) as of Jan 06 2026?
As of Jan 06 2026, American Express Co (AXP) has a FCF Yield of 7.38%. This means that for every dollar of American Express Co’s market capitalization, the company generates 7.38 cents in free cash flow.
What is the current Forward P/E ratio for American Express Co (AXP) as of Jan 06 2026?
As of Jan 06 2026, American Express Co (AXP) has a Forward P/E ratio of 22.38. This means the market is willing to pay $22.38 for every dollar of American Express Co’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for American Express Co (AXP) as of Jan 06 2026?
As of Jan 06 2026, American Express Co (AXP) has a Forward P/S ratio of 3.34. This means the market is valuing AXP at $3.34 for every dollar of expected revenue over the next 12 months.