American Express‘ CAPE Ratio

The CAPE ratio for American Express is a valuation tool that compares the company’s current stock price with the average of its inflation-adjusted earnings over the last 10 years. American Express, a leader in the financial services and payment processing sector, operates in an industry where consumer spending and credit usage heavily influence performance. By using the CAPE ratio, investors assess whether AmEx is priced appropriately based on long-term earnings trends. A high CAPE suggests overvaluation, while a low CAPE indicates potential undervaluation. This ratio helps investors better evaluate American Express’ stock in a cyclical market.