Stocks
AXP Fairly Valued by DCF Model: GuruFocus
American Express Co (AXP) has seen its stock price decline by 15.1% year-to-date and 7.8% in the past year, currently trading at $311.56 per share.
GuruFocus' discounted cash flow (DCF) analysis suggests that AXP is fairly valued, with an intrinsic value of $320.04.
The DCF earnings-based model assumes a 12.8% annual EPS growth rate over the next ten years, followed by a terminal growth phase at 4%, both discounted at 11%.
The free cash flow (FCF)-based intrinsic value for AXP is calculated at $377.37, indicating modest undervaluation compared to the earnings-based intrinsic value of $320.04.