Discounted Cash Flow (DCF) Analysis Levered

American Express Company (AXP)

$171.55

-0.27 (-0.16%)
All numbers are in Millions, Currency in USD
Stock DCF: 341.50 | 171.55 | 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 40,31543,55636,08743,14752,86257,219.2961,935.7367,040.9572,566.9778,548.49
Revenue (%)
Operating Cash Flow 8,93013,6325,59114,64521,07916,337.1317,683.7619,141.3920,719.1722,427
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 7,62011,9874,11313,09519,134.4514,232.2915,405.4316,675.2618,049.7619,537.56

Weighted Average Cost Of Capital

Share price $ 171.55
Beta 1.177
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 9.341
Total Debt 44,000
Total Equity 135,524.50
Total Capital 179,524.50
Debt Weighting 24.51
Equity Weighting 75.49
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 40,31543,55636,08743,14752,86257,219.2961,935.7367,040.9572,566.9778,548.49
Operating Cash Flow 8,93013,6325,59114,64521,07916,337.1317,683.7619,141.3920,719.1722,427
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 7,62011,9874,11313,09519,134.4514,232.2915,405.4316,675.2618,049.7619,537.56
WACC
PV LFCF 13,146.4013,144.3113,142.2113,140.1213,138.03
SUM PV LFCF 65,711.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.26
Free cash flow (t + 1) 19,928.31
Terminal Value 318,343.58
Present Value of Terminal Value 214,070.08

Intrinsic Value

Enterprise Value 279,781.15
Net Debt 10,000
Equity Value 269,781.15
Shares Outstanding 790
Equity Value Per Share 341.50