Amazon Price to Earning

AMZN -  USA Stock  

USD 3,488  12.45  0.36%

Amazon Inc fundamentals help investors to digest information that contributes to Amazon's financial success or failures. It also enables traders to predict the movement of Amazon Stock. This fundamental analysis module provides a way for investors to measures Amazon's intrinsic value by examining all of its available economic and financial indicators and drivers, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Amazon stock. Please note, this module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

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Price to Earnings Ratio is expected to rise to 82.41 this year. Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to rise to about 55.1 B this year.

Amazon Price to Earning Analysis

Amazon's Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
 2018 2019 2020 2021 (projected)
Enterprise Value738.68 B952.43 B1,685.76 B1,818.84 B
Average Equity37.28 B55.01 B78.79 B85.02 B
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
More About Price to Earning | All Equity Analysis

Current Amazon Price to Earning

    
  66.00 X  
Most of Amazon's fundamental indicators, such as Price to Earning, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Amazon Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Amazon Price to Earning Historical Pattern

Today, most investors in Amazon Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Amazon's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's price to earning growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Amazon price to earning as a starting point in their analysis.
 Amazon Price to Earning 
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      Timeline 
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Compare to competition

Amazon Accumulated Retained Earnings Deficit

Accumulated Retained Earnings Deficit

56.7 BillionShare
Amazon Accumulated Retained Earnings Deficit are quite stable at the moment as compared to the past year. The company's current value of Accumulated Retained Earnings Deficit is estimated at 56.7 Billion
Based on the latest financial disclosure, the price to earning indicator of Amazon Inc is roughly 66 times. This is 165.06% higher than that of the Consumer Cyclical sector and significantly higher than that of the Internet Retail industry. The price to earning for all United States stocks is 129.81% lower than that of the firm.

Amazon Price to Earning Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Amazon's direct or indirect competition against its Price to Earning to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Amazon could also be used in its relative valuation, which is a method of valuing Amazon by comparing valuation metrics of similar companies.
Amazon is currently under evaluation in price to earning category among related companies.

Amazon Current Valuation Drivers

We derive many important indicators used in calculating different scores of Amazon from analyzing Amazon's financial statements. These drivers represent accounts that assess Amazon's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Amazon's important valuation drivers and their relationship over time.
201620172018201920202021 (projected)
Net Income Per Employee6.93 K5.36 K15.56 K14.52 K16.39 K14.26 K
Revenue Per Employee397.23 K314.25 K359.67 K351.53 K296.62 K304.42 K
Average Assets70.13 B103.83 B141.7 B198.45 B270.73 B292.11 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA12.4 B16.13 B28.03 B37.35 B51.09 B55.13 B
Earnings Before Interest Taxes and Depreciation Amortization USD12.4 B16.13 B28.03 B37.35 B51.09 B55.13 B
Earnings before Tax3.8 B3.8 B11.27 B13.96 B24.19 B26.1 B
Average Equity17.09 B24.31 B37.28 B55.01 B78.79 B85.02 B
Enterprise Value350.86 B575.48 B738.68 B952.43 B1,685.76 B1,818.84 B
Free Cash Flow10.47 B8.31 B19.4 B25.82 B31.02 B33.47 B
Invested Capital24.16 B64.3 B81.1 B149.79 B222.06 B239.59 B
Invested Capital Average26.15 B50.16 B76.56 B143.57 B197.6 B213.2 B
Market Capitalization356.31 B563.54 B734.42 B916.15 B1,634.17 B1,763.18 B
Tangible Asset Value79.62 B117.96 B148.1 B210.49 B306.18 B330.35 B
Working Capital1.97 B2.31 B6.71 B8.52 B6.35 B5.49 B

Amazon Fundamentals

About Amazon Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Amazon Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Amazon using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Amazon Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2021
Price to Earnings Ratio 76.38  82.41 
Earnings Before Interest Taxes and Depreciation Amortization EBITDA51.1 B55.1 B
Earnings before Tax24.2 B26.1 B
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 operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 1271000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Amazon without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Amazon

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Amazon position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amazon will appreciate offsetting losses from the drop in the long position's value.

Amazon Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Amazon and EBay Inc. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Please continue to Amazon Piotroski F Score and Amazon Altman Z Score analysis. 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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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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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 Inc underlying business (such as 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.