American Express Stock Price To Earning
| AXP Stock | USD 235.64 1.46 0.62% |
American Express fundamentals help investors to digest information that contributes to American Express' financial success or failures. It also enables traders to predict the movement of American Stock. The fundamental analysis module provides a way to measure American Express' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to American Express stock.
American | Price To Earning |
American Express Company Price To Earning Analysis
American Express' Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Current American Express Price To Earning | 15.49 X |
Most of American Express' fundamental indicators, such as Price To Earning, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, American Express is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
American Price To Earning Driver Correlations
Understanding the fundamental principles of building solid financial models for American Express is extremely important. It helps to project a fair market value of American Stock properly, considering its historical fundamentals such as Price To Earning. Since American Express' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of American Express' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of American Express' interrelated accounts and indicators.
Click cells to compare fundamentals
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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American Retained Earnings
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Based on the latest financial disclosure, American Express has a Price To Earning of 15.49 times. This is 15.26% lower than that of the Consumer Finance sector and 2.7% lower than that of the Financials industry. The price to earning for all United States stocks is 46.07% higher than that of the company.
American Price To Earning Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses American Express' direct or indirect competition against its Price To Earning to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of American Express could also be used in its relative valuation, which is a method of valuing American Express by comparing valuation metrics of similar companies.American Express is currently under evaluation in price to earning category among related companies.
American Express ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, American Express' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to American Express' managers, analysts, and investors.Environment Score | Governance Score | Social Score |
American Fundamentals
| Return On Equity | 0.33 | ||||
| Return On Asset | 0.0356 | ||||
| Profit Margin | 0.16 % | ||||
| Operating Margin | 0.22 % | ||||
| Current Valuation | 166.47 B | ||||
| Shares Outstanding | 719.3 M | ||||
| Shares Owned By Insiders | 21.18 % | ||||
| Shares Owned By Institutions | 65.65 % | ||||
| Number Of Shares Shorted | 6.38 M | ||||
| Price To Earning | 15.49 X | ||||
| Price To Book | 5.60 X | ||||
| Price To Sales | 2.83 X | ||||
| Revenue | 60.36 B | ||||
| Gross Profit | 28.78 B | ||||
| EBITDA | 12.16 B | ||||
| Net Income | 8.37 B | ||||
| Cash And Equivalents | 34 B | ||||
| Cash Per Share | 42.01 X | ||||
| Total Debt | 49.16 B | ||||
| Debt To Equity | 1.84 % | ||||
| Current Ratio | 1.62 X | ||||
| Book Value Per Share | 40.01 X | ||||
| Cash Flow From Operations | 18.56 B | ||||
| Short Ratio | 2.51 X | ||||
| Earnings Per Share | 12.14 X | ||||
| Price To Earnings To Growth | 2.25 X | ||||
| Target Price | 223.46 | ||||
| Number Of Employees | 74.6 K | ||||
| Beta | 1.23 | ||||
| Market Capitalization | 169.5 B | ||||
| Total Asset | 261.11 B | ||||
| Retained Earnings | 19.61 B | ||||
| Working Capital | 9.57 B | ||||
| Current Asset | 84.45 B | ||||
| Current Liabilities | 74.88 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 1.33 % | ||||
| Net Asset | 261.11 B | ||||
| Last Dividend Paid | 2.5 |
About American Express Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze American Express's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Express using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Express based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with American Express
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Express position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Express will appreciate offsetting losses from the drop in the long position's value.Moving together with American Stock
| 0.82 | C | Citigroup Aggressive Push | PairCorr |
Moving against American Stock
| 0.66 | FG | FG Annuities Life Financial Report 1st of May 2024 | PairCorr |
| 0.58 | BFIIW | BurgerFi International | PairCorr |
| 0.57 | AC | Associated Capital | PairCorr |
| 0.57 | HG | Hamilton Insurance Report 21st of October 2024 | PairCorr |
| 0.56 | DHIL | Diamond Hill Investment | PairCorr |
The ability to find closely correlated positions to American Express could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Express when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Express - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Express to buy it.
The correlation of American Express is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Express moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Express moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Express can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out American Express Piotroski F Score and American Express Altman Z Score analysis. To learn how to invest in American Stock, please use our How to Invest in American Express guide.You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for American Stock analysis
When running American Express' price analysis, check to measure American Express' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Express is operating at the current time. Most of American Express' value examination focuses on studying past and present price action to predict the probability of American Express' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Express' price. Additionally, you may evaluate how the addition of American Express to your portfolios can decrease your overall portfolio volatility.
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Is American Express' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Express. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Express listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.388 | Dividend Share 2.5 | Earnings Share 12.14 | Revenue Per Share 77.996 | Quarterly Revenue Growth 0.099 |
The market value of American Express is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Express' value that differs from its market value or its book value, called intrinsic value, which is American Express' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Express' market value can be influenced by many factors that don't directly affect American Express' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Express' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Express is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Express' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.