Is American Express Co. overvalued or undervalued?

Oct 20 2025 12:19 PM IST
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As of October 17, 2025, American Express Co. is fairly valued with a P/E ratio of 21, a Price to Book Value of 6.79, and an EV to EBITDA of 7.26, while outperforming the S&P 500 with a 1-year return of 21.29%.
As of 17 October 2025, the valuation grade for American Express Co. has moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 21, a Price to Book Value of 6.79, and an EV to EBITDA of 7.26. In comparison to peers, American Express has a P/E ratio of 22.48, which is slightly higher than Discover Financial Services at 22.07, but lower than United Rentals, Inc. at 40.65.

Additionally, American Express has demonstrated strong performance relative to the S&P 500, with a 1-year return of 21.29% compared to the S&P's 14.08%, indicating that the stock has outperformed the benchmark. Overall, the combination of valuation metrics and recent performance suggests that American Express is fairly valued at its current price.
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