Is AMERICAN EXPRESS CO (AXP) undervalued?
AMERICAN EXPRESS CO trades on a P/E of 19.69 against earnings growth of 16.0% a year over the last 3 years, giving a PEG ratio of 1.23 — between the 1.0 and 2.0 levels that convention treats as the middle ground.
Earnings figures are measured from AXP’s filed annual accounts, not estimated. PEG compares price to earnings growth alone — it says nothing about debt, cash generation, or what an acquirer would pay. Read it alongside the figures below rather than on its own.
What it would cost to buy AXP
Enterprise value is not shown for AXP: enterprise value is not meaningful for banks and insurers, whose debt is an operating input rather than financing.
| Measure | Value |
|---|---|
| Diluted earnings per shareto 2025-12-31 | $15.38 |
| P/E ratioto 2025-12-31 | 19.7 |
| Earnings growth (3-year CAGR)to 2025-12-31 | 16.0% |
| PEG ratioto 2025-12-31 | 1.2 |
| Market capitalisationto 2026-07-14 | $204.47B |
| Total debtto 2026-06-30 | $57.02B |
| Net debtto 2026-06-30 | $11.45B |
| Enterprise value | — |
| EBITDAto 2009-12-31 | $3.91B |
| Free cash flowto 2018-12-31 | $8.21B |
| EV / EBITDA | — |
| EV / Sales | — |
| Free cash flow yieldto 2018-12-31 | 4.0% |
| Net debt / EBITDAto 2009-12-31 | 2.9× |
| Return on capital employedto 2009-12-31 | 3.1% |
Earnings growth is measured across AMERICAN EXPRESS CO’s own filed annual accounts. PEG conventionally uses forecast growth from analyst estimates; filings contain only history, so this is trailing growth and will read differently from a PEG quoted elsewhere.
Not shown, and why
- Enterprise value
- enterprise value is not meaningful for banks and insurers, whose debt is an operating input rather than financing.
- EV / EBITDA
- enterprise value is not meaningful for banks and insurers, whose debt is an operating input rather than financing.
- EV / Sales
- enterprise value is not meaningful for banks and insurers, whose debt is an operating input rather than financing.
Against the sector
No sector comparison: fewer than four companies in the reference set share AXP’s industry classification.
Market ratios
Price-based ratios from market data. Anything drawn from a filed statement is in the enterprise-value section above, with its source.
| Metric | Value |
|---|---|
| Price | $302.78 |
| PEGY ratio | — |
| Dividend yield | 1.26% |
| Price / book | — |
| Price / sales | — |
| Return on equity | 34.0% |
| Profit margin | — |
| Operating margin | — |
| Debt / equity | 630.17 |
| Current ratio | — |
| Beta | 1.11 |
| 52-week range | $290.97 – $387.49 |
Not reported for AXP: pegy ratio, price / book, price / sales, profit margin, operating margin, current ratio. A dash means the figure was not available from the source, not that it is zero.
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About AXP’s valuation
- What is the PEG ratio for AMERICAN EXPRESS CO (AXP)?
- AMERICAN EXPRESS CO has a PEG ratio of 1.23, from a P/E of 19.69 and earnings growth of 16.0% a year measured across 3 years of filed accounts. That is between the 1.0 and 2.0 levels that convention treats as the middle ground. Note that PEG is conventionally quoted against forecast growth; this uses reported history, so it will differ from a PEG you see elsewhere.
- Is AXP undervalued right now?
- That depends on the measure. On PEG, AXP reads 1.23, between the 1.0 and 2.0 levels that convention treats as the middle ground. The PEG ratio compares price to earnings growth alone — it ignores debt, cash generation and asset backing, so it is a starting point rather than a conclusion. The enterprise-value measures above account for debt and cash; they often tell a different story.
- What is the PEGY ratio for AXP?
- The PEGY ratio for AMERICAN EXPRESS CO is —. PEGY adds the dividend yield of 1.26% to the growth rate in the denominator, which gives a fairer reading of companies returning cash as income rather than growth.
- Where do these AXP figures come from?
- Market price and capitalisation come from live market data; earnings, growth and dividend figures come from AMERICAN EXPRESS CO's published financial statements. Every derived ratio on this page shows the arithmetic that produced it.
This page describes published financial data. It is not investment advice and makes no recommendation to buy or sell AXP.