Is American Express Co. overvalued or undervalued?

Oct 19 2025 11:57 AM IST
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As of October 17, 2025, American Express Co. is fairly valued with a P/E ratio of 21, outperforming the S&P 500 with a year-to-date return of 16.79% and a 3-year return of 144.89%, while its valuation metrics are more attractive compared to peers like Discover Financial Services and United Rentals, Inc.
As of 17 October 2025, the valuation grade for American Express Co. has moved from expensive to fair. The company appears to be fairly valued given its current metrics, with a P/E ratio of 21, a Price to Book Value of 6.79, and an EV to EBITDA ratio of 7.26. In comparison, Discover Financial Services has a P/E of 22.07, while United Rentals, Inc. is significantly higher at 40.65, indicating that American Express is positioned more attractively within its peer group.

The stock has shown strong performance, with a year-to-date return of 16.79% compared to the S&P 500's 13.30%, and a remarkable 3-year return of 144.89% against the S&P 500's 81.19%. This performance reinforces the notion that American Express is fairly valued, as it continues to outperform the broader market.
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