DCF Tool

AXP

American Express Co. – Credit Card Issuing
American Express Company is an American multinational financial services corporation that specializes in payment cards. Headquartered in New York City, it is one of the most valuable companies in the world and one of the 30 components of the Dow Jones Industrial Average.
Analysis Results
Intrinsic Value $640.41
Latest Price $218.20
Relative Value 66% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 15.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 17.3 16.1
2025 20.0 17.3
2026 23.1 18.6
2027 26.6 19.9
2028 30.7 21.4
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 571 billion. This corresponds to a present value of 370 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 93.3 billion. Adding in the terminal value gives a total present value of 464 billion.

There are presently 724.0 million outstanding shares, so the intrinsic value per share is 640.41.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 236,856,000,000
Current Cash 0
Current Liabilities 192,687,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 44,169,000,000
Change in NCWC 6,663,000,000
EBIT 10,665,000,000
Tax Provision 2,139,000,000
Depreciation and Amortization 1,651,000,000
Capital Expenditure -1,563,000,000
Unlevered Free Cash Flow 15,246,073,718
Current Assets 205,450,000,000
Current Cash 0
Current Liabilities 167,944,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 37,506,000,000
Change in NCWC 8,640,000,000
EBIT 9,887,000,000
Tax Provision 2,071,000,000
Depreciation and Amortization 1,626,000,000
Capital Expenditure -1,855,000,000
Unlevered Free Cash Flow 16,161,747,835
Current Assets 166,316,000,000
Current Cash 0
Current Liabilities 137,450,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 28,866,000,000
Change in NCWC 2,285,000,000
EBIT 9,922,000,000
Tax Provision 2,629,000,000
Depreciation and Amortization 1,695,000,000
Capital Expenditure -1,550,000,000
Unlevered Free Cash Flow 9,911,646,552
Current Assets 168,673,000,000
Current Cash 0
Current Liabilities 142,092,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 26,581,000,000
Change in NCWC -751,000,000
EBIT 4,296,000,000
Tax Provision 1,161,000,000
Depreciation and Amortization 1,543,000,000
Capital Expenditure -1,478,000,000
Unlevered Free Cash Flow 2,449,000,000
Current Assets 178,756,000,000
Current Cash 0
Current Liabilities 151,424,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 27,332,000,000
Change in NCWC -530,000,000
EBIT 8,429,000,000
Tax Provision 1,670,000,000
Depreciation and Amortization 1,188,000,000
Capital Expenditure -1,645,000,000
Unlevered Free Cash Flow 5,772,000,000
Current Assets 176,612,000,000
Current Cash 0
Current Liabilities 148,750,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 27,862,000,000
Change in NCWC 4,280,000,000
EBIT 8,122,000,000
Tax Provision 1,201,000,000
Depreciation and Amortization 1,293,000,000
Capital Expenditure -1,310,000,000
Unlevered Free Cash Flow 11,184,000,000
Current Assets 168,906,000,000
Current Cash 0
Current Liabilities 145,324,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 23,582,000,000
Change in NCWC -522,000,000
EBIT 7,414,000,000
Tax Provision 4,678,000,000
Depreciation and Amortization 1,321,000,000
Capital Expenditure -1,062,000,000
Unlevered Free Cash Flow 2,473,000,000
Current Assets 145,974,000,000
Current Cash 0
Current Liabilities 121,870,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 24,104,000,000
Change in NCWC -688,000,000
EBIT 8,096,000,000
Tax Provision 2,688,000,000
Depreciation and Amortization 1,095,000,000
Capital Expenditure -1,375,000,000
Unlevered Free Cash Flow 4,440,000,000
Current Assets 148,140,000,000
Current Cash 0
Current Liabilities 123,348,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 24,792,000,000
Change in NCWC -142,000,000
EBIT 8,322,000,000
Tax Provision 2,775,000,000
Depreciation and Amortization 1,043,000,000
Capital Expenditure -1,341,000,000
Unlevered Free Cash Flow 4,972,759,637
Current Assets 146,160,000,000
Current Cash 0
Current Liabilities 121,226,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 24,934,000,000
Change in NCWC 1,746,000,000
EBIT 8,361,000,000
Tax Provision 3,106,000,000
Depreciation and Amortization 1,012,000,000
Capital Expenditure -1,195,000,000
Unlevered Free Cash Flow 7,035,637,637
Current Assets 140,599,000,000
Current Cash 0
Current Liabilities 117,411,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 23,188,000,000
Change in NCWC -223,000,000
EBIT 7,888,000,000
Tax Provision 2,529,000,000
Depreciation and Amortization 1,020,000,000
Capital Expenditure -1,006,000,000
Unlevered Free Cash Flow 5,150,000,000
Current Assets 140,640,000,000
Current Cash 0
Current Liabilities 117,229,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 23,411,000,000
Change in NCWC 2,367,000,000
EBIT 6,451,000,000
Tax Provision 1,969,000,000
Depreciation and Amortization 991,000,000
Capital Expenditure -1,053,000,000
Unlevered Free Cash Flow 6,787,000,000

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