AXP — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($308.90)
DCF	$-23.69	-107.7%
Graham Number	$129.95	-57.9%
Reverse DCF	—	—
DDM	$67.57	-78.1%
EV/EBITDA	—	—

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: —

Near-term growth (yrs 1–5)(%)Rev: 10.6% / EPS: 16.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.08%

Computed WACC: 8.08%

Cost of equity (Re)10.50%(Rf 4.30% + β 1.13 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)76.90%

Debt weight (D/V)23.10%

Results

Intrinsic Value / share$-23.69

Current Price$308.90

Upside / Downside-107.7%

Net Debt (used)$16.26B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	8.6%	12.6%	16.6%	20.6%	24.6%
7.0%	$-23.69	$-23.69	$-23.69	$-23.69	$-23.69
8.0%	$-23.69	$-23.69	$-23.69	$-23.69	$-23.69
9.0%	$-23.69	$-23.69	$-23.69	$-23.69	$-23.69
10.0%	$-23.69	$-23.69	$-23.69	$-23.69	$-23.69
11.0%	$-23.69	$-23.69	$-23.69	$-23.69	$-23.69

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $15.38

Book Value / share($)Yahoo: $48.80

Results

Graham Number$129.95

Current Price$308.90

Margin of Safety-57.9%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.08%

Terminal growth rate(%)

Computed WACC: 8.08%

Cost of equity (Re)10.50%(Rf 4.30% + β 1.13 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)76.90%

Debt weight (D/V)23.10%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$308.90

Implied Near-term FCF Growth—

Historical Revenue Growth10.6%

Historical Earnings Growth16.6%

Base FCF (TTM)—

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $3.28

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$67.57

Current Price$308.90

Upside / Downside-78.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: —

Target EV/EBITDA multipleCurrent: —×

Net Debt($B)Default: $16.26B

Results

Implied Equity Value / share$-23.69

Current Price$308.90

Upside / Downside-107.7%

Implied EV$0

← Overview Financial Statements ← Companies