Discounted Cash Flow (DCF) Analysis Levered
American Express Company (AXP)
$150.23
+0.33 (+0.22%)
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 | 40,338 | 43,556 | 36,087 | 42,380 | 52,862 | 57,223.29 | 61,944.40 | 67,055.02 | 72,587.28 | 78,575.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 8,930 | 13,632 | 5,591 | 14,645 | 21,079 | 16,407.13 | 17,760.77 | 19,226.10 | 20,812.31 | 22,529.40 |
| 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 | 7,620 | 11,987 | 4,113 | 13,095 | 19,224 | 14,314.31 | 15,495.28 | 16,773.70 | 18,157.58 | 19,655.64 |
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 | 40,338 | 43,556 | 36,087 | 42,380 | 52,862 | 57,223.29 | 61,944.40 | 67,055.02 | 72,587.28 | 78,575.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 8,930 | 13,632 | 5,591 | 14,645 | 21,079 | 16,407.13 | 17,760.77 | 19,226.10 | 20,812.31 | 22,529.40 |
| 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 | 7,620 | 11,987 | 4,113 | 13,095 | 19,224 | 14,314.31 | 15,495.28 | 16,773.70 | 18,157.58 | 19,655.64 |
| WACC | ||||||||||
| PV LFCF | 13,166.21 | 13,109.33 | 13,052.70 | 12,996.31 | 12,940.17 | |||||
| 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 |