Amazon Stock Valuation

AMZN
 Stock
  

USD 89.73  0.00  0.00%   

What is the current enterprise value of Amazon Inc? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Amazon, is its stock price multiplied by the total number of shares outstanding, calculating Amazon's enterprise value requires a different approach. It uses Amazon's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Amazon Enterprise Value is quite stable at the moment as compared to the past year. The company's current Enterprise Value is estimated at 1.92 Trillion. Tangible Asset Value is expected to rise to about 437.2 B this year, although the value of Free Cash Flow will most likely fall to (9.3 B).
Amazon Inc shows a prevailing Real Value of $1102.26 per share. The current price of the firm is $89.73. At this time, the firm appears to be undervalued. Our model approximates the value of Amazon Inc from analyzing the firm fundamentals such as return on equity of 0.09 %, and Profit Margin of 0.0226 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Amazon Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Amazon's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Amazon Most Recent Valuation Data

Beta
1.1947
Change Receivables
-18.2 B
Fiscal Year End
December
Property Plant And Equipment Net
216.4 B
Enterprise Value
1029.9 B
Current Deferred Revenue
11.8 B
Undervalued
Today 89.73
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.
Our valuation method for Amazon Inc is useful when determining the fair value of the Amazon stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Amazon. 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.
1,102
Real Value
1,105
Upside
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:
Earnings
Estimates (13)
LowProjected EPSHigh
36.1540.7945.00
Details
Hype
Prediction
LowEstimated ValueHigh
85.1988.3791.55
Details
Naive
Forecast
LowNext ValueHigh
82.2585.4388.61
Details
31 Analysts
Consensus
LowTarget PriceHigh
3,8004,1585,000
Details
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. When choosing an evaluation method for Amazon Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Amazon Investments

64.55 Billion

Amazon Valuation Drivers Correlation

Many accounts on the financial statements of Amazon Inc are highly interrelated and sometimes correlated. Consequently, when conducting Amazon's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Amazon
Click cells to compare fundamentals

Amazon Valuation Trend

Knowing Amazon's actual value is paramount for traders to make sound investment determinations. Amazon's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Amazon's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Amazon's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Amazon Market Cap

Amazon Inc is number one stock in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is presently estimated at about 2.67 Trillion. Amazon totals roughly 902.44 Billion in market capitalization claiming about 34% of stocks in Consumer Discretionary industry.
Capitalization  Total debt  Revenue  Valuation  Workforce

Amazon Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Amazon's current stock value. Our valuation model uses many indicators to compare Amazon value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Amazon competition to find correlations between indicators driving Amazon's intrinsic value. More Info.
Amazon Inc is number one stock in price to book category among related companies. It is number one stock in price to sales category among related companies fabricating about  0.26  of Price to Sales per Price to Book. The ratio of Price to Book to Price to Sales for Amazon Inc is roughly  3.89 . The value of Price to Sales Ratio is estimated to slide to 3.50. Comparative valuation analysis is a catch-all model that can be used if you cannot value Amazon by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Amazon's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Amazon's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Amazon's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Amazon and how it compares across the competition.

About Amazon Valuation

The stock valuation mechanism determines the current worth of Amazon Inc on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Amazon's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Amazon's related companies.
Fiscal Year End
December
Industry
Internet Retail
Concentration
Internet & Direct Marketing Retail
Full Time Employees
1.5 M
Service Category
Internet & Direct Marketing Retail
Employer Id Number
91-1646860
Last ReportedProjected for 2022
Gross Profit197.5 B213.1 B
Profit Margin 7.10  7.66 

Amazon Valuation Growth Rates

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. Note, investing in growth stocks can be very risky. If the company such as Amazon does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y-0.097

Amazon Current Valuation Indicators

Valuation refers to the process of determining the present value of Amazon Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Amazon we look at many different elements of the entity such as Amazon's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Amazon's valuation analysis is also 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.
Please continue to Trending Equities. Note that the Amazon Inc information on this page should be used as a complementary analysis to other Amazon's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Complementary Tools for Amazon Stock analysis

When running Amazon Inc price analysis, check to measure Amazon's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Amazon is operating at the current time. Most of Amazon's value examination focuses on studying past and present price action to predict the probability of Amazon's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Amazon's price. Additionally, you may evaluate how the addition of Amazon to your portfolios can decrease your overall portfolio volatility.
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Is Amazon's industry 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 YOY
(0.1) 
Market Capitalization
900.3 B
Quarterly Revenue Growth YOY
0.147
Return On Assets
0.02
Return On Equity
0.0878
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 Amazon value 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.