Amazon Valuation
| AMZN Stock | USD 191.69 0.61 0.32% |
At this time, the firm appears to be overvalued. Amazon Inc shows a prevailing Real Value of $164.2 per share. The current price of the firm is $191.69. Our model approximates the value of Amazon Inc from analyzing the firm fundamentals such as return on equity of -0.0192, and Profit Margin of (0.01) % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Amazon's price fluctuation is very steady at this time. Calculation of the real value of Amazon Inc is based on 3 months time horizon. Increasing Amazon's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Amazon is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Amazon Stock. However, Amazon's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 191.69 | Real 164.2 | Hype 191.69 | Naive 187.89 |
The intrinsic value of Amazon's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Amazon's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Amazon Inc helps investors to forecast how Amazon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Amazon more accurately as focusing exclusively on Amazon's fundamentals will not take into account other important factors: Amazon Total Value Analysis
Amazon Inc is presently estimated to have takeover price of 978.45 B with market capitalization of 1.01 T, debt of 67.15 B, and cash on hands of 89.89 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Amazon fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
978.45 B | 1.01 T | 67.15 B | 89.89 B |
Amazon Investor Information
About 61.0% of the company shares are held by institutions such as insurance companies. The company had not issued any dividends in recent years. Amazon Inc had 20:1 split on the 6th of June 2022. Based on the analysis of Amazon's profitability, liquidity, and operating efficiency, Amazon Inc is not in a good financial situation at the moment. It has a very high risk of going through financial straits in April.Amazon Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Amazon has an asset utilization ratio of 111.09 percent. This suggests that the Company is making $1.11 for each dollar of assets. An increasing asset utilization means that Amazon Inc is more efficient with each dollar of assets it utilizes for everyday operations.Amazon Ownership Allocation
Amazon holds a total of 10.25 Billion outstanding shares. Over half of Amazon's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Amazon. Please watch out for any change in the institutional holdings of Amazon Inc as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Amazon Profitability Analysis
The company reported the revenue of 513.98 B. Net Loss for the year was (2.72 B) with profit before overhead, payroll, taxes, and interest of 225.15 B.About Amazon Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Amazon Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Amazon Inc based exclusively on its fundamental and basic technical indicators. By analyzing Amazon's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Amazon's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Amazon. We calculate exposure to Amazon's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Amazon's related companies.Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington. AMAZON COM operates under Internet Retail classification in Exotistan and is traded on Commodity Exchange. It employs 1335000 people.
8 Steps to conduct Amazon's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Amazon's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Amazon's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Amazon's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Amazon's revenue streams: Identify Amazon's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Amazon's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Amazon's growth potential: Evaluate Amazon's management, business model, and growth potential.
- Determine Amazon's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Amazon's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Information and Resources on Investing in Amazon Stock
When determining whether Amazon Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amazon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amazon Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amazon Inc Stock:Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.