Is American Express Company (AXP) Undervalued?
Based on the current stock price of $381.05 and a P/E ratio of 25.57,American Express Company has a PEG ratio of 1.62.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.62, AXP appears to be fairly valued relative to its growth rate of 15.74%.
Based on a PEG ratio of 1.54 (adjusted for dividends).
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How we analyzed AXP
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 25.57and dividing it by the annual growth rate of 15.74%.
PEG = 25.57 (P/E) ÷ 15.74 (Growth) = 1.62
Frequently Asked Questions about AXP
What is the current PEG Ratio for American Express Company (AXP)?+
The current PEG Ratio for American Express Company is 1.62. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is AXP stock undervalued right now?+
Based on the PEG ratio of 1.62, American Express Company appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for AXP?+
The PEGY ratio for American Express Company is 1.54. This metric accounts for dividend yield (0.86%), providing a more complete valuation picture.