American Express

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
DA Davidson	Arren Cyganovich	acyganovich@dadco.com
Oppenheimer	Ben Chittenden	benjamin.chittenden@opco.com
Nomura Research	Bill Carcache	bill.carcache@nomura.com
Stifel Nicolaus	Christopher C. Brendler	ccbrendler@stifel.com
Sandler O’Neill & Partners	Christopher R. Donat	cdonat@sandleroneill.com
Drexel Hamilton	David Hilder	dhilder@drexelhamilton.com
Deutsche Bank Research	David Ho	david.ho@db.com
JMP Securities	David M. Scharf	dscharf@jmpsecurities.com
Evercore ISI	David Togut	david.togut@evercoreisi.com
Guggenheim Securities	Eric Wasserstrom	eric.wasserstrom@guggenheimpartners.com
BMO Capital Markets	James Fotheringham	james.fotheringham@bmo.com
Susquehanna Financial Group	James Friedman	james.friedman@sig.com
RBC Capital Markets	Jason Arnold	jason.arnold@rbccm.com
Piper Jaffray	Jason Deleeuw	jason.s.deleeuw@pjc.com
Wells Fargo Securities	Jason Harbes	jason.harbes@wellsfargo.com
Jefferies	John Hecht	jhecht@jefferies.com
Compass Point Research	John T. Williams	jwilliams@compasspointllc.com
Pacific Crest Securities-KBCM	Josh Beck	jbeck@pacific-crest.com
Bernstein Research	Kevin St. Pierre	kevin.st-pierre@bernstein.com
Credit Suisse	Moshe Orenbuch	moshe.orenbuch@credit-suisse.com
Keefe Bruyette & Woods	Sanjay Sakhrani	ssakhrani@kbw.com

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Income	NI	5,125	5,365	$NI\, =\, EBIT\,\,-\,Interest\,\, Expense\,\, -\,\, Taxes\,\, Paid$
Cash Flow From Equity	CFE	5,125	5,537	$CFE\,=\,\,NI\,\,-\,\,\Delta\,\,TE\,\,+\,\,OCI$
Total Equity	TE	20,673	20,501	$TE\,=\,Total\,\,Assets\,\,-\,\,Total\,\,Long-Term\,\,Debt$
Return on Equity	ROE	24.79%	26.17%	$ROE\,=\,\frac { NI}{TE}$
Net Investment	NetInv	–	(172)	$NetInv\,=\,{ {TE}_{1}}-{{TE}_{0}}$
Investment Rate	IR	0.00%	-3.21%	$IR\,=\,\frac {NetInv}{NI}$
Cost of Equity	COE	0.84%	-0.62%	$COE \,=\,R_{F}\,\,+\,\,(R_{M}\,-\,R_{F})\beta$
Enterprise value	EV_Market	44,673	41,875	$EV\,=\,Market\,\,Cap\,\,Equity\,-\,Cash$
Long-Run Growth	g = IR x ROIC	0.00%	-0.84%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
PRICE/EARNINGS $\frac {Price}{Book\,\,Value} \,= \,\frac{ROE\, -\, g}{ROE\,(COE\,-\,g)}$
PRICE/CASH EARNINGS $\frac {Price}{Cash\,\,Earnings} \,= \,\frac{ROE\, -\, g}{ROE\,(COE\,-\,g)}\,(\frac{NI}{CE})$
PRICE/BOOK VALUE $\frac {Price}{Book\,\, Value} \,= \,\frac{ROE\, -\, g}{ROIC\,(COE\,-\,g)}\,\,x\,\,ROE\,\,=\,\,\frac{ROE\,\,-\,\,g}{COE\,\,-\,\,g}$