Amazon Inc Stock Current Valuation

AMZN Stock  USD 174.48  0.06  0.03%   
Valuation analysis of Amazon Inc helps investors to measure Amazon's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of the 19th of March 2024, Enterprise Value Multiple is likely to drop to 17.82. Fundamental drivers impacting Amazon's valuation include:
Price Book
8.9747
Enterprise Value
1.9 T
Enterprise Value Ebitda
20.8116
Price Sales
3.1521
Forward PE
41.1523
Overvalued
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  160.52 Target  160.61 Hype  174.48
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.
158.85
Downside
160.52
Real Value
191.93
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
172.81174.48176.15
Details
60 Analysts
Consensus
LowTarget PriceHigh
146.16160.61178.28
Details

Amazon Current Valuation Analysis

Amazon's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
 2021 2022 2023 2024 (projected)
Gross Profit197.5B225.2B270.0B283.5B
Total Revenue469.8B514.0B574.8B603.5B

Enterprise Value

 = 

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current Amazon Current Valuation

    
  1.86 T  
Most of Amazon's fundamental indicators, such as Current Valuation, 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 Current Valuation 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 Amazon Stock properly, considering its historical fundamentals such as Current Valuation. 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.
0.970.990.940.990.980.930.981.00.990.940.990.540.970.810.940.990.980.990.860.99-0.320.980.980.990.840.040.950.930.230.810.6
0.970.940.910.930.970.850.950.980.970.840.990.490.970.780.970.950.970.950.870.97-0.420.940.960.960.89-0.020.950.880.180.780.59
0.990.940.911.00.950.950.990.970.960.940.970.460.950.850.910.990.950.990.810.99-0.260.980.980.990.780.080.920.920.230.850.64
0.940.910.910.930.930.890.880.950.930.90.910.650.880.720.850.940.950.940.810.9-0.250.910.910.910.760.050.910.920.210.710.48
0.990.931.00.930.950.950.990.970.960.950.960.50.940.830.91.00.950.990.810.98-0.230.980.980.990.770.110.920.930.260.830.62
0.980.970.950.930.950.890.950.991.00.930.980.630.960.720.950.960.960.960.910.96-0.420.940.950.960.88-0.010.960.890.280.710.51
0.930.850.950.890.950.890.940.920.890.950.890.410.850.860.790.960.910.960.680.93-0.270.930.940.940.620.040.80.910.10.860.65
0.980.950.990.880.990.950.940.970.960.920.970.390.960.880.930.990.950.990.791.0-0.290.980.991.00.80.030.910.910.180.870.69
1.00.980.970.950.970.990.920.970.990.930.990.580.970.780.950.980.980.980.880.98-0.360.970.970.980.860.010.960.920.230.780.57
0.990.970.960.930.961.00.890.960.990.930.990.630.970.720.950.960.960.970.910.96-0.40.950.950.960.870.010.960.90.330.710.51
0.940.840.940.90.950.930.950.920.930.930.90.580.870.750.810.950.890.960.770.91-0.220.940.90.920.680.170.870.910.240.750.55
0.990.990.970.910.960.980.890.970.990.990.90.530.970.780.960.970.970.970.880.98-0.380.960.970.980.89-0.030.950.890.240.780.58
0.540.490.460.650.50.630.410.390.580.630.580.530.48-0.020.460.490.490.490.750.42-0.290.420.40.410.550.050.630.510.66-0.03-0.2
0.970.970.950.880.940.960.850.960.970.970.870.970.480.770.990.940.950.950.880.97-0.330.940.960.960.91-0.010.940.860.240.770.6
0.810.780.850.720.830.720.860.880.780.720.750.78-0.020.770.740.850.830.850.450.87-0.120.880.880.880.530.070.660.8-0.261.00.87
0.940.970.910.850.90.950.790.930.950.950.810.960.460.990.740.910.950.910.880.94-0.390.90.940.930.94-0.080.920.820.20.740.58
0.990.950.990.941.00.960.960.990.980.960.950.970.490.940.850.910.971.00.810.99-0.260.980.980.990.770.070.920.940.190.850.64
0.980.970.950.950.950.960.910.950.980.960.890.970.490.950.830.950.970.970.840.97-0.320.940.980.970.84-0.030.90.920.120.820.61
0.990.950.990.940.990.960.960.990.980.970.960.970.490.950.850.911.00.970.810.99-0.270.980.990.990.780.060.910.940.190.850.64
0.860.870.810.810.810.910.680.790.880.910.770.880.750.880.450.880.810.840.810.81-0.410.760.790.80.90.010.870.750.520.440.25
0.990.970.990.90.980.960.931.00.980.960.910.980.420.970.870.940.990.970.990.81-0.310.980.991.00.820.040.920.910.180.860.67
-0.32-0.42-0.26-0.25-0.23-0.42-0.27-0.29-0.36-0.4-0.22-0.38-0.29-0.33-0.12-0.39-0.26-0.32-0.27-0.41-0.31-0.23-0.29-0.28-0.40.29-0.3-0.2-0.11-0.11-0.04
0.980.940.980.910.980.940.930.980.970.950.940.960.420.940.880.90.980.940.980.760.98-0.230.970.990.760.110.930.920.110.870.69
0.980.960.980.910.980.950.940.990.970.950.90.970.40.960.880.940.980.980.990.790.99-0.290.970.990.81-0.010.890.910.130.880.68
0.990.960.990.910.990.960.941.00.980.960.920.980.410.960.880.930.990.970.990.81.0-0.280.990.990.80.040.920.920.140.880.68
0.840.890.780.760.770.880.620.80.860.870.680.890.550.910.530.940.770.840.780.90.82-0.40.760.810.8-0.140.860.680.310.530.39
0.04-0.020.080.050.11-0.010.040.030.010.010.17-0.030.05-0.010.07-0.080.07-0.030.060.010.040.290.11-0.010.04-0.140.10.190.090.080.13
0.950.950.920.910.920.960.80.910.960.960.870.950.630.940.660.920.920.90.910.870.92-0.30.930.890.920.860.10.850.330.660.48
0.930.880.920.920.930.890.910.910.920.90.910.890.510.860.80.820.940.920.940.750.91-0.20.920.910.920.680.190.850.180.790.71
0.230.180.230.210.260.280.10.180.230.330.240.240.660.24-0.260.20.190.120.190.520.18-0.110.110.130.140.310.090.330.18-0.26-0.34
0.810.780.850.710.830.710.860.870.780.710.750.78-0.030.771.00.740.850.820.850.440.86-0.110.870.880.880.530.080.660.79-0.260.87
0.60.590.640.480.620.510.650.690.570.510.550.58-0.20.60.870.580.640.610.640.250.67-0.040.690.680.680.390.130.480.71-0.340.87
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition

In accordance with the recently published financial statements, Amazon Inc has a Current Valuation of 1.86 T. This is much higher than that of the Internet & Direct Marketing Retail sector and significantly higher than that of the Consumer Discretionary industry. The current valuation for all United States stocks is significantly lower than that of the firm.

Amazon Current Valuation 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 Current Valuation 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 current valuation category among related companies.

Amazon ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Amazon's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Amazon's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

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.
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 operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 1544000 people.

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.

Moving together with Amazon Stock

  0.89HD Home Depot Financial Report 21st of May 2024 PairCorr
  0.71CVNA Carvana Aggressive PushPairCorr

Moving against Amazon Stock

  0.95EXTO Almacenes Xito SAPairCorr
  0.81TSLA Tesla Inc Buyout TrendPairCorr
  0.77FTCH Farfetch ClassPairCorr
  0.75CHWY Chewy Inc Earnings Call TomorrowPairCorr
  0.74CUK Carnival Plc ADS Earnings Call This WeekPairCorr
The ability to find closely correlated positions to Amazon could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amazon when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Amazon - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Amazon Inc to buy it.
The correlation of Amazon is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Amazon moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Amazon Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Amazon can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
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 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 the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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.
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
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.