Amazon Return On Equity

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.

Search Return On Equity 

 
Refresh
Average Equity is expected to rise to about 85 B this year.

Amazon Return On Equity Analysis

Amazon's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
 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
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
More About Return On Equity | All Equity Analysis

Current Amazon Return On Equity

    
  31.92 %  
Most of Amazon's fundamental indicators, such as Return On Equity, 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 Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Amazon is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Return On Equity. Since Amazon's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Amazon's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Amazon's interrelated accounts and indicators.

Amazon Return On Equity 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 return on equity 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 return on equity as a starting point in their analysis.
 Amazon Return On Equity 
Share
      Timeline 
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Compare to competition

Amazon Shareholders Equity

Shareholders Equity

100.78 BillionShare
Amazon Shareholders Equity is quite stable at the moment as compared to the past year. The company's current value of Shareholders Equity is estimated at 100.78 Billion
Based on the latest financial disclosure, Amazon Inc has a Return On Equity of 31.92%. This is much higher than that of the Consumer Cyclical sector and significantly higher than that of the Internet Retail industry. The return on equity for all United States stocks is notably lower than that of the firm.

Amazon Return On Equity 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 Return On Equity 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 return on equity 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
Average Equity78.8 B85 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.

Did you try this?

Run Equity Valuation Now

   

Equity Valuation

Check real value of public entities based on technical and fundamental data
All  Next Launch Module

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
Run Pair Correlation  
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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.
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
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.