Amazon.com Inc.

United States of America Country flag United States of America
Sector: Broadline Retailers
Ticker: AMZN
Factsheet Factsheet

Market multiple valuation of Amazon.com Inc. ( AMZN | USA)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Amazon.com Inc. is significantly higher than the median of its peer group: around 22.00. The company valuation of Amazon.com Inc. according to these metrics is way above the market valuation of its peer group.
The P/Earnings NTM ratio of Amazon.com Inc. is significantly higher than the average of its sector (Broadline Retailers): 16.39. The company valuation of Amazon.com Inc. according to these metrics is way above the market valuation of its sector.
The P/Earnings NTM ratio of Amazon.com Inc. is lower than its historical 5-year average: 104.4. The (current) company valuation of Amazon.com Inc. is therefore below its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2019P/E NTM
Amazon.com Inc.Free trialFree trialFree trial
International PeersFree trialFree trialFree trial
Broadline Retailers12.5514.9516.39
NASDAQ 10025.3424.3025.76
United States of America5.669.2411.96
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Beta (Ref: NASDAQ 100)
Levered betaUnlevered beta
1-Year0.620.62
2-Year0.910.91
3-Year0.940.94
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Stock Perf excl. Dividends (in USD)
AMZNNASDAQ 100Rel. Perf.
Year-to-Date33.7%9.9%23.8%
1-Week1.4%2.0%-0.6%
1-Month8.1%10.1%-2.0%
1-Year39.2%34.7%4.5%
3-Year148.1%65.0%83.1%
5-Year473.4%112.3%361.2%
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International Peers - Amazon.com Inc.
Company NameCtryMarket
Cap.
last (mUSD)
Amazon.com Inc.USA1 232 496
International Peers Median0.92
Wal-Mart Inc.USA351 266
eBay Inc.USA31 761
JD.com Inc.CYM91 549
Target CorporationUSA59 735
Best Buy Co. Inc.USA20 019
GPRV Analysis
Amazon.com Inc.
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • Amazon.com Inc.
  • NASDAQ 100
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Did you know ?

On the Infront Analytics platform, there are two ways to identify the listed peers which most closely resemble a private firm:
- with Peer Tracker if you already know a listed peer.
Peer Tracker is a patented technology tool for building peer groups using industry classifications. The degree of similarity between two companies is calculated comparing their sector footprints and measured using comparability scores.
- with Market Screener if you have no listed peer in mind.
Market Screener is a dedicated interface for screening companies using multiple criteria, identifying peers, searching for comparable companies in a specific business sector.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).