Stock Analysis on Net

Amazon.com Inc. (NASDAQ:AMZN)

$24.99

Price to Operating Profit (P/OP)
since 2005

Microsoft Excel

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Calculation

Amazon.com Inc., P/OP, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Amazon.com Inc. Annual Report.

Share price
The share price exhibits an overall upward trajectory from 2006 through 2025, increasing from $1.96 to $229.15. Initial growth was moderate, with values under $20 until 2014, followed by a pronounced increase between 2014 and 2021, where the price peaked at $165.63. A decline is observed in 2022 to $103.39, after which the price sharply recovers to $171.81 in 2024 and further to $229.15 in 2025. This pattern indicates strong long-term appreciation, punctuated by short-term volatility.
Operating profit per share
Operating profit per share shows steady growth overall, beginning at $0.05 in 2006 and reaching $6.47 by 2025. Early years display small increases and occasional declines, such as a drop from $0.16 in 2011 to $0.07 in 2013, and a low point at $0.02 in 2015. Substantial gains are evident post-2015, with rapid growth from $0.44 in 2017 to $6.47 in 2025, reflecting significant operational profitability improvements over the latter period.
Price-to-Operating Profit (P/OP) ratio
The P/OP ratio demonstrates high variability and an overall declining trend after peaking in specific years. Initially, the ratio is moderate, averaging around 40-50 through 2006 to 2011. It spikes dramatically, reaching supranormal levels such as 925.12 in 2015 and high values over 180 in 2013-2014. Following 2015, the ratio trends downward, stabilizing between approximately 35 and 86 from 2017 onward, with the lowest value recorded at 35.4 in 2025. This suggests that market valuation per unit of operating profit was historically high during certain periods, likely due to investor expectations, but has become more reasonable in recent years as operating profits have risen strongly.

Comparison to Competitors