American Express Company (AXP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-37.3%

$206.37

vs $328.89 price

Levered DCF

$368.90

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.18

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	24.01×	21.14×	16.68×	15×	16.31×	32.07×	15.54×	11.78×
P/B	7.68×	6.99×	4.91×	4.49×	5.82×	4.23×	4.47×	3.66×
P/S	3.2×	2.85×	2.04×	1.99×	2.91×	2.54×	2.19×	1.89×
EV / EBITDA	17.16×	15.25×	11.54×	10.82×	11.99×	18.73×	14.88×	12.29×
Gross margin	83.2%	81.9%	82.5%	91.1%	100.3%	82.2%	85.1%	85.4%
Operating margin	17.1%	17.4%	15.6%	17.2%	24.1%	11.2%	17.9%	18.8%
Net margin	13.5%	13.7%	12.4%	13.5%	18.1%	8.2%	14.4%	16.0%
Current ratio	0.28×	0.27×	0.33×	0.31×	0.27×	0.58×	0.95×	1.02×
Debt / equity	1.73×	1.69×	1.75×	1.78×	1.85×	1.95×	2.79×	2.76×
Interest coverage	1.68×	1.56×	1.53×	3.47×	8.33×	2.05×	2.43×	2.76×
Dividend yield	0.9%	0.9%	1.3%	1.4%	1.1%	1.5%	1.4%	1.6%
Payout ratio	21.0%	19.7%	21.3%	20.8%	18.0%	47.0%	21.0%	19.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	32.4%	33.5%	29.8%	30.4%	36.3%	13.6%	29.3%	31.0%
Return on invested capital	8.3%	8.7%	7.2%	7.2%	8.8%	3.3%	6.1%	6.6%
Return on assets	3.6%	3.7%	3.2%	3.3%	4.3%	1.6%	3.4%	3.7%
Free cash flow yield	6.2%	5.7%	12.3%	17.3%	10.1%	4.2%	11.6%	9.3%
Earnings yield	4.2%	4.8%	6.1%	6.8%	6.2%	3.2%	6.6%	8.5%
Enterprise value	$267.2B	$222.1B	$140.3B	$121.3B	$148.5B	$109.3B	$143.1B	$115.7B
Net debt / EBITDA	0.65×	0.72×	0.22×	0.93×	1.57×	2.06×	4.16×	3.63×
Cash conversion cycle (days)	-398	-377	-406	-896	28,401	-476	-221	-219