Discounted Cash Flow (DCF) Analysis Levered

American Express Company (AXP)

$164.85

+4.34 (+2.70%)
All numbers are in Millions, Currency in USD
Stock DCF: 652.35 | 164.85 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 24,42428,86530,89536,08743,14749,79057,455.7766,301.7876,509.7388,289.33
Revenue (%)
Operating Cash Flow 13,5408,93013,6325,59114,64517,917.7520,676.4123,859.7927,533.2931,772.37
Operating Cash Flow (%)
Capital Expenditure -1,062-1,310-1,645-1,478-1,550-2,180.71-2,516.46-2,903.89-3,350.98-3,866.91
Capital Expenditure (%)
Free Cash Flow 12,4787,62011,9874,11313,09515,737.0518,159.9520,955.9024,182.3127,905.47

Weighted Average Cost Of Capital

Share price $ 164.85
Beta 1.076
Diluted Shares Outstanding 806
Cost of Debt
Tax Rate 24.60
After-tax Cost of Debt 2.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.818
Total Debt 40,918
Total Equity 132,869.10
Total Capital 173,787.10
Debt Weighting 23.54
Equity Weighting 76.46
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 24,42428,86530,89536,08743,14749,79057,455.7766,301.7876,509.7388,289.33
Operating Cash Flow 13,5408,93013,6325,59114,64517,917.7520,676.4123,859.7927,533.2931,772.37
Capital Expenditure -1,062-1,310-1,645-1,478-1,550-2,180.71-2,516.46-2,903.89-3,350.98-3,866.91
Free Cash Flow 12,4787,62011,9874,11313,09515,737.0518,159.9520,955.9024,182.3127,905.47
WACC
PV LFCF 14,772.4116,001.8717,333.6718,776.3020,339
SUM PV LFCF 87,223.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.53
Free cash flow (t + 1) 28,463.57
Terminal Value 628,334.98
Present Value of Terminal Value 457,964.27

Intrinsic Value

Enterprise Value 545,187.53
Net Debt 19,396
Equity Value 525,791.53
Shares Outstanding 806
Equity Value Per Share 652.35