Amazon Valuation

AMZN Stock  USD 174.48  0.06  0.03%   
At this time, the firm appears to be fairly valued. Amazon Inc shows a prevailing Real Value of $168.49 per share. The current price of the firm is $174.48. Our model approximates the value of Amazon Inc from analyzing the firm fundamentals such as return on equity of 0.17, and Profit Margin of 0.05 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
8.9747
Enterprise Value
1.9 T
Enterprise Value Ebitda
20.8116
Price Sales
3.1521
Forward PE
41.1523
Fairly Valued
Today
174.48
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  174.48 Real  168.49 Target  160.61 Hype  174.18 Naive  176.64
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock 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 the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
166.80
Downside
168.49
Real Value
191.86
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 (0)
LowProjectedHigh
0.610.830.98
Details
Hype
Prediction
LowEstimatedHigh
172.49174.18175.87
Details
Naive
Forecast
LowNext ValueHigh
174.96176.64178.33
Details
60 Analysts
Consensus
LowTarget PriceHigh
146.16160.61178.28
Details

Amazon Investments

(45.65 Billion)

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 second in price to book category among related companies. It is number one stock in price to earning category among related companies reporting about  9.28  of Price To Earning per Price To Book. . 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.
Last ReportedProjected for 2024
Gross Profit270 B283.5 B
Pretax Profit Margin 0.07  0.07 
Operating Profit Margin 0.06  0.07 
Net Profit Margin 0.05  0.06 
Gross Profit Margin 0.47  0.49 

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.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Amazon Growth Indicators

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.
Common Stock Shares Outstanding10.5 B
Quarterly Earnings Growth Y O Y50.693
Forward Price Earnings41.1523

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.
When determining whether Amazon Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amazon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amazon Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amazon Inc Stock:
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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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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
50.693
Earnings Share
2.9
Revenue Per Share
55.783
Quarterly Revenue Growth
0.139
Return On Assets
0.0465
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 if Amazon is a good investment 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.