Discounted Cash Flow (DCF) Analysis Levered

American Express Company (AXP)

$150.23

+0.33 (+0.22%)
All numbers are in Millions, Currency in USD
Stock DCF: 334.68 | 150.23 | undervalue

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 40,33843,55636,08742,38052,86257,223.2961,944.4067,055.0272,587.2878,575.97
Revenue (%)
Operating Cash Flow 8,93013,6325,59114,64521,07916,407.1317,760.7719,226.1020,812.3122,529.40
Operating Cash Flow (%)
Capital Expenditure -1,310-1,645-1,478-1,550-1,855-2,092.83-2,265.49-2,452.40-2,654.73-2,873.76
Capital Expenditure (%)
Free Cash Flow 7,62011,9874,11313,09519,22414,314.3115,495.2816,773.7018,157.5819,655.64

Weighted Average Cost Of Capital

Share price $ 150.23
Beta 1.186
Diluted Shares Outstanding 752
Cost of Debt
Tax Rate 21.61
After-tax Cost of Debt 4.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.195
Total Debt 44,000
Total Equity 112,972.96
Total Capital 156,972.96
Debt Weighting 28.03
Equity Weighting 71.97
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 40,33843,55636,08742,38052,86257,223.2961,944.4067,055.0272,587.2878,575.97
Operating Cash Flow 8,93013,6325,59114,64521,07916,407.1317,760.7719,226.1020,812.3122,529.40
Capital Expenditure -1,310-1,645-1,478-1,550-1,855-2,092.83-2,265.49-2,452.40-2,654.73-2,873.76
Free Cash Flow 7,62011,9874,11313,09519,22414,314.3115,495.2816,773.7018,157.5819,655.64
WACC
PV LFCF 13,166.2113,109.3313,052.7012,996.3112,940.17
SUM PV LFCF 65,264.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.72
Free cash flow (t + 1) 20,048.75
Terminal Value 298,344.56
Present Value of Terminal Value 196,413.31

Intrinsic Value

Enterprise Value 261,678.04
Net Debt 10,000
Equity Value 251,678.04
Shares Outstanding 752
Equity Value Per Share 334.68