AXPNEUTRAL

EV/EBITDA

17.2x

Higher than 63% of Financial Services sector peers

Updated 1928h ago

Sector Performance

63th percentile

AXP

17.2x

Sector Median

13.1x

Sector Avg

15.5x

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Deep Analysis

American Express's current EV/EBITDA of 17.2x means the company's total enterprise value (its market cap plus debt minus cash) is 17.2 times its earnings before interest, taxes, depreciation, and amortization—a multiple investors use to gauge valuation relative to operating profitability.

This sits above the Financial Services sector median of 16.2x, placing the stock at the 59th percentile among sector peers, indicating it is pricier than a majority of comparable companies. No trend data is available: the year-over-year change and quarter-over-quarter change are both marked N/A, and no historical values beyond the current 17.2x are provided. Without trend information, the elevated level alone suggests a slightly stretched valuation that carries modest downside risk if earnings do not justify the premium. This metric neither reinforces nor undermines the overall NEUTRAL verdict, because while the above-median multiple points to lower margin of safety, the lack of directional trend prevents a clear signal. The neutral stance is consistent with a valuation that is not extreme enough to warrant a bearish call but offers no compelling discount for a bullish entry.

Frequently Asked Questions

What does the EV/EBITDA tell investors about AXP?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does AXP's EV/EBITDA compare to its sector?

AXP's EV/EBITDA of 17.2x compares to a Financial Services sector median of 13.1x, placing it in the 63th percentile.

Who are AXP's closest peers by EV/EBITDA?

The closest Financial Services peers by EV/EBITDA include: SCHW (12.6x), BAC (13.5x), PNC (11.6x), AFL (11.0x), PFG (10.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.