Amazon Valuation
| AMZO34 Stock | BRL 45.68 0.28 0.62% |
At this time, the firm appears to be undervalued. Amazon Inc shows a prevailing Real Value of R$52.57 per share. The current price of the firm is R$45.68. Our model approximates the value of Amazon Inc from analyzing the firm fundamentals such as profit margin of (0.01) %, and Return On Equity of -0.0192 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Undervalued
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.
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. | Historical | Market 45.68 | Real 52.57 | Hype 45.68 |
The real value of Amazon Stock, also known as its intrinsic value, is the underlying worth of Amazon Inc Company, which is reflected in its stock price. It is based on Amazon's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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: 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 earning category among related companies. It is number one stock in price to book category among related companies fabricating about 34.78 of Price To Book per Price To Earning. 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.Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington. AMAZON DRN operates under Internet Retail classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 1523000 people.
8 Steps to conduct Amazon's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Amazon's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Amazon's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Amazon's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Amazon's revenue streams: Identify Amazon's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Amazon's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Amazon's growth potential: Evaluate Amazon's management, business model, and growth potential.
- Determine Amazon's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Amazon's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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 tightly coupled with the direction of predictive economic indicators such as signals in nation. 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 the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Complementary Tools for Amazon Stock analysis
When running Amazon's 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 the 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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