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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-04-19), American Express Co's Intrinsic Value: Projected FCF is $263.50. The stock price of American Express Co is $228.85. Therefore, American Express Co's Price-to-Intrinsic-Value-Projected-FCF of today is 0.9.
The historical rank and industry rank for American Express Co's Intrinsic Value: Projected FCF or its related term are showing as below:
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of American Express Co was 1.02. The lowest was 0.58. And the median was 0.72.
The historical data trend for American Express Co's Intrinsic Value: Projected FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, American Express Co's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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.
For the Credit Services industry and Financial Services sector, American Express Co's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where American Express Co's Price-to-Projected-FCF falls into.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)
In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)
Add all the Free Cash Flow together and divide 6 will get American Express Co's Free Cash Flow(6 year avg) = $12,439.04.
American Express Co's Intrinsic Value: Projected FCF for today is calculated as
Intrinsic Value: Projected FCF | = | (Growth Multiple | * | Free Cash Flow (6 year avg) | + | Total Stockholders Equity (Dec23) | * | 0.8) | / | Shares Outstanding (Diluted Average) |
= | (13.59589104257 | * | 12439.04 | + | 28057 | * | 0.8) | / | 727.000 | |
= | 263.50 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Express Co (NYSE:AXP) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
American Express Co's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
= | 228.85 | / | 263.50128268799 | |
= | 0.87 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Thank you for viewing the detailed overview of American Express Co's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Jeffrey C Campbell | officer: EVP, Chief Financial Officer | 4333 AMON CARTER BLVD, FORT WORTH TX 76155 |
Douglas E. Buckminster | officer: Pres, Int'l Consumer & SBS | 200 VESEY STREET, M/S 01-50-01, NEW YORK NY 10285 |
Clayton Walter Joseph Iii | director | C/O APOLLO GLOBAL MANAGEMENT, INC., 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019 |
Caillec Christophe Le | officer: Chief Financial Officer | 200 VESEY STREET, NEW YORK NY 10285 |
Monique Herena | officer: Chief Human Resources Officer | 225 LIBERTY STREET, NEW YORK NY 10286 |
Howard Grosfield | officer: President, U.S. Consumer Serv | 200 VESEY STREET, NEW YORK NY 10285 |
Quinn Jessica Lieberman | officer: Controller | 200 VESEY STREET, NEW YORK NY 10285 |
Raymond Joabar | officer: CRO and Pres., GRBC | 200 VESEY STREET, NEW YORK NY 10285 |
Denise Pickett | officer: CRO and President, GRBC Group | 200 VESEY STREET, NEW YORK NY 10285 |
Anna Marrs | officer: Pres., Global Comm. Services | 200 VESEY STREET, NEW YORK NY 10285 |
Deborah P Majoras | director | ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202 |
Rafael Marquez | officer: President, International Card | 200 VESEY STREET, NEW YORK NY 10285 |
Theodore Leonsis | director | WASHINGTON CAPITALS, 627 N GLEBE RD SUITE 850, ARLINGTON VA 22203 |
Stephen J Squeri | officer: EVP, Chief Information Officer | 200 VESEY STREET, NEW YORK NY 10285 |
Anre D Williams | officer: Pres. Global Merchant Services | 200 VESEY STREET, NEW YORK NY 10285 |
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