American Express

UNDERVALUEDAXP · NYSE · Financial Services
AXP·NYSE·Financial Services
UNDERVALUED
American Express
46.8%upside
MARKET PRICE
$325.42
FAIR PRICE
$477.74
MARGIN
$152.32
UNDERVALUEDFAIROVERVALUED
P/E RATIO
20.7x
DIV. YIELD
1.37%
ROE
33.5%
MARKET CAP
$217B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

46.8%upside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$325.42

FAIR PRICE

$477.74

MARGIN

$152.32

UNDERVALUEDFAIROVERVALUED

P/E Ratio

20.7x

What is P/E? →

Div. Yield

1.37%

ROE

33.5%

Exceptional

Market Cap

$217B

Mega-cap

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FPI RATING

6.6/ 10

High-quality fundamentals and low debt levels, but weak profitability margins and expensive valuation relative to fundamentals.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$382.19CONSERVATIVE ENTRY
$477.74FAIR PRICE
$325.42MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$382.19

Fair price × 0.80

DISTANCE

17.4%

Price to entry level

At the current price of $325.42, AXP trades 17.4% below the conservative entry level of $382.19. The stock is currently priced below the 20% margin of safety threshold, indicating a potential value opportunity based on the model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate AXP's fair price

American Express's fair price of $477.74 is derived from a blended model that combines DCF analysis (50%), relative valuation against Financial Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $325.42, AXP trades 46.8% below its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting AXP's risk profile.

RELATIVE · 30%

Comparing AXP's valuation multiples against Financial Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for AXP, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate AXP's fair value with your own inputs.

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FAQ

What is the fair price of AXP?+

Based on our blended model combining DCF analysis (50%), relative valuation against Financial Services peers (30%), and analyst consensus (20%), the fair price for American Express is $477.74. At the current market price of $325.42, AXP trades 46.8% below its calculated fair value.

Is AXP overvalued or undervalued?+

American Express is currently undervalued based on our valuation model. The stock trades at $325.42, which is 46.8% below the fair price of $477.74. The P/E ratio of 20.7x is a key metric in the valuation.

What is the margin of safety for AXP?+

With a 20% margin of safety applied to the fair price of $477.74, the conservative entry level for AXP is $382.19. At the current market price of $325.42, the stock trades 17.4% below this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is AXP's fair price updated?+

We update fair price calculations for AXP daily after market close. The current fair price of $477.74 incorporates the latest market data and sector multiples.

What factors affect AXP's fair price calculation?+

AXP's fair price of $477.74 is derived from DCF analysis (50% weight), relative valuation against Financial Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 20.7x, ROE of 33.5%, and dividend yield of 1.37%.

Is AXP a good buy right now?+

At $325.42, AXP trades 46.8% below our fair value estimate of $477.74. The stock is currently undervalued. ROE stands at 33.5% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.

Does AXP pay dividends?+

AXP has a dividend yield of 1.37%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.