Discounted Cash Flow (DCF) Analysis Levered
American Express Company (AXP)
$158.75
+2.23 (+1.42%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 40,315 | 43,556 | 36,087 | 43,147 | 52,862 | 57,219.29 | 61,935.73 | 67,040.95 | 72,566.97 | 78,548.49 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 8,930 | 13,632 | 5,591 | 14,645 | 21,079 | 16,337.13 | 17,683.76 | 19,141.39 | 20,719.17 | 22,427 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,310 | -1,645 | -1,478 | -1,550 | -1,944.55 | -2,104.84 | -2,278.34 | -2,466.13 | -2,669.41 | -2,889.44 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 7,620 | 11,987 | 4,113 | 13,095 | 19,134.45 | 14,232.29 | 15,405.43 | 16,675.26 | 18,049.76 | 19,537.56 |
Weighted Average Cost Of Capital
| Share price | $ 158.75 |
|---|---|
| Beta | 1.195 |
| Diluted Shares Outstanding | 790 |
| Cost of Debt | |
| Tax Rate | 21.61 |
| After-tax Cost of Debt | 4.92% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.121 |
| Total Debt | 44,000 |
| Total Equity | 125,412.50 |
| Total Capital | 169,412.50 |
| Debt Weighting | 25.97 |
| Equity Weighting | 74.03 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 40,315 | 43,556 | 36,087 | 43,147 | 52,862 | 57,219.29 | 61,935.73 | 67,040.95 | 72,566.97 | 78,548.49 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 8,930 | 13,632 | 5,591 | 14,645 | 21,079 | 16,337.13 | 17,683.76 | 19,141.39 | 20,719.17 | 22,427 |
| Capital Expenditure | -1,310 | -1,645 | -1,478 | -1,550 | -1,944.55 | -2,104.84 | -2,278.34 | -2,466.13 | -2,669.41 | -2,889.44 |
| Free Cash Flow | 7,620 | 11,987 | 4,113 | 13,095 | 19,134.45 | 14,232.29 | 15,405.43 | 16,675.26 | 18,049.76 | 19,537.56 |
| WACC | ||||||||||
| PV LFCF | 13,174.39 | 13,200.33 | 13,226.33 | 13,252.38 | 13,278.48 | |||||
| SUM PV LFCF | 66,131.92 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.03 |
| Free cash flow (t + 1) | 19,928.31 |
| Terminal Value | 330,486.03 |
| Present Value of Terminal Value | 224,611.11 |
Intrinsic Value
| Enterprise Value | 290,743.03 |
|---|---|
| Net Debt | 10,000 |
| Equity Value | 280,743.03 |
| Shares Outstanding | 790 |
| Equity Value Per Share | 355.37 |