AXP Undervalued by Nearly 21% Amid Share Price Softness, Analysts Say

American Express (AXP) stock has seen strong long-term gains over the past five years, but recent share price softness raises questions about whether it's undervalued or fairly valued.

The Excess Returns intrinsic value estimate suggests American Express is undervalued by 20.6%, with an estimated intrinsic value of around $415.63 per share compared to its current market price of around $330.

This discrepancy largely reflects different views on long-term profitability and nearer-term sentiment. The company's closed network model and use of artificial intelligence help keep fraud rates low, but shifts in loss experience or spending trends could impact the valuation.

The P/E ratio is also a mixed bag for American Express, trading at around 19.7x with a fair P/E of 19.9x and slightly below the peer average. This suggests the stock is broadly aligned with investors' expectations but doesn't indicate a clear bargain or overvaluation.