Stocks
American Express Valued at Over $400 Per Share by DCF Analysis
American Express (AXP) is one of the world's leading payments and financial services companies, operating a globally recognized closed-loop payments network connecting cardmembers, merchants, and businesses.
The company has built a premium customer base concentrated among affluent consumers and businesses, with revenue generated through cardmember spending, merchant discount fees, interest income, annual card fees, and other financial services.
A DCF analysis by The Acquirer's Multiple estimates American Express's intrinsic value per share at approximately $423, which is higher than its current price of around $344. The company has a significant margin of safety with a 19% discount to the estimated intrinsic value.