Amazon Stock Valuation

AMZN -  USA Stock  

USD 3,488  12.45  0.36%

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.
Free Cash Flow is expected to rise to about 33.5 B this year. Enterprise Value is expected to rise to about 1818.8 B this year.
Amazon Inc shows a prevailing Real Value of $4111.17 per share. The current price of the firm is $3488.24. At this time, the firm appears to be undervalued. Our model approximates the value of Amazon Inc from analyzing the firm fundamentals such as profit margin of 6.42 %, and Return On Equity of 31.92 % 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.

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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.
Undervalued
Today
3,488
16th of September 2021
Share
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.
4,111
Real Value
4,112
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 (15)
LowProjected EPSHigh
45.2052.1861.44
Details
Hype
Prediction
LowEstimated ValueHigh
3,4653,4663,821
Details
31 Analysts
Consensus
LowTarget PriceHigh
3,7204,1625,000
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

45.61 BillionShare

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 Internet Retail industry is presently estimated at about 1.84 Trillion. Amazon totals roughly 1.75 Trillion in market capitalization claiming about 95% of equities under Internet Retail industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

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 rated fifth in price to sales category among related companies. It is number one stock in price to book category among related companies fabricating about  4.06  of Price to Book per Price to Sales. . Price to Book Value is expected to rise to 18.66 this year

About Amazon Valuation

The equity 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.
Last ReportedProjected for 2021
Gross Profit152.8 B164.8 B
Profit Margin 0.06  0.06 
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.

Amazon Quarterly Enterprise Value

1.79 TrillionShare

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.
Quick Ratio0.84
Earnings Quarterly Growth219.80%
Revenue Growth43.80%
Enterprise Value To Ebitda32.92
Earnings Growth215.20%
Enterprise Value To Revenue4.49

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.
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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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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.