Amazon Valuation
| AMZN Stock | USD 205.74 0.00 0.00% |
At this time, the firm appears to be overvalued. Amazon Inc shows a prevailing Real Value of $162.6 per share. The current price of the firm is $205.74. Our model approximates the value of Amazon Inc from analyzing the firm fundamentals such as return on equity of 0.23, and Profit Margin of 0.08 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Amazon's valuation include:
Price Book 8.1738 | Enterprise Value 2.2 T | Enterprise Value Ebitda 19.0766 | Price Sales 3.5245 | Forward PE 32.7869 |
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 205.74 | Real 162.6 | Target 160.61 | Hype 204.94 | Naive 196.44 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Amazon's intrinsic value based on its ongoing forecasts of Amazon's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Amazon's closest peers.
Amazon Cash |
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Amazon Valuation Trend
Knowing Amazon's actual value is paramount for traders when making sound investment determinations. Using both Amazon's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Amazon Revenue by Product
Amazon Total Value Analysis
Amazon Inc is presently forecasted to have valuation of 2.16 T with market capitalization of 2.19 T, debt of 135.61 B, and cash on hands of 53.89 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Amazon fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
2.16 T | 2.19 T | 135.61 B | 53.89 B |
Amazon Investor Information
About 64.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.68. Amazon Inc had not issued any dividends in recent years. The entity 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 performing exceptionally good at the moment. It has a great risk to report excellent financial results in December.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 108.89 percent. This suggests that the Company is making $1.09 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 10.52 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. On November 22, 2024, Representative Marjorie Taylor Greene of US Congress acquired under $15k worth of Amazon Inc's common stock.Amazon Profitability Analysis
The company reported the previous year's revenue of 574.78 B. Net Income was 30.43 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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 270 B | 283.5 B | |
| Pretax Profit Margin | 0.07 | 0.07 | |
| Operating Profit Margin | 0.06 | 0.07 | |
| Net Profit Margin | 0.05 | 0.06 | |
| Gross Profit Margin | 0.47 | 0.49 |
Amazon Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 10.5 B | |
| Quarterly Earnings Growth Y O Y | 0.521 | |
| Forward Price Earnings | 32.7869 |
Amazon Current Valuation Indicators
Amazon's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Amazon's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Amazon, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Amazon's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Amazon's worth.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, which includes a position in Amazon Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Is Broadline Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amazon. If investors know Amazon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amazon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.521 | Earnings Share 4.68 | Revenue Per Share 59.486 | Quarterly Revenue Growth 0.11 | Return On Assets 0.0707 |
The market value of Amazon Inc is measured differently than its book value, which is the value of Amazon that is recorded on the company's balance sheet. Investors also form their own opinion of Amazon's value that differs from its market value or its book value, called intrinsic value, which is Amazon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amazon's market value can be influenced by many factors that don't directly affect Amazon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amazon's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amazon is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amazon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.