Is American Express Co. overvalued or undervalued?

Oct 21 2025 12:01 PM 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 1-year return of 21.29%, and has a P/E ratio slightly lower than its peers, indicating a shift from expensive to fair valuation.
As of 17 October 2025, the valuation grade for American Express Co. moved from expensive to fair. The company appears to be 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 Co. 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. Despite its fair valuation, American Express has outperformed the S&P 500 across multiple periods, with a 1Y return of 21.29% compared to the S&P 500's 14.08%.
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