Stock Analysis on Net

Amazon.com Inc. (NASDAQ:AMZN)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

Amazon.com Inc., current price multiples

Microsoft Excel
Amazon.com Inc. GameStop Corp. Home Depot Inc. Lowe’s Cos. Inc. TJX Cos. Inc. Consumer Discretionary Distribution & Retail Consumer Discretionary
Selected Financial Data
Current share price (P) $180.75
No. shares of common stock outstanding 10,406,627,415
Growth rate (g) 15.77%
 
Earnings per share (EPS) $2.92
Next year expected EPS $3.38
Operating profit per share $3.54
Sales per share $55.23
Book value per share (BVPS) $19.40
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 61.82 867.40 21.29 15.94 25.87 42.83 33.62
Price to next year expected earnings 53.40 1,477.29 3.43 5.51 19.40 34.54 27.65
Price-earnings-growth (PEG) 3.92 0.04 0.08 0.78 1.78 1.56
Price to operating profit (P/OP) 51.04 14.86 10.65 19.96 32.38 29.17
Price to sales (P/S) 3.27 1.10 2.11 1.43 2.13 2.77 2.64
Price to book value (P/BV) 9.32 4.34 308.79 15.85 12.43 10.22

Based on: 10-K (reporting date: 2023-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Amazon.com Inc., historical price multiples

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 58.66 48.08 78.20 86.30
Price to operating profit (P/OP) 48.43 86.50 64.48 72.85 68.77
Price to sales (P/S) 3.10 2.06 3.41 4.32 3.56
Price to book value (P/BV) 8.84 7.25 11.60 17.86 16.11

Based on: 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).

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Amazon.com Inc. P/OP ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Amazon.com Inc. P/S ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Amazon.com Inc. P/BV ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Earnings (P/E)

Amazon.com Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 10,387,381,291 10,247,259,757 10,176,888,200 10,071,294,860 9,956,208,880
Selected Financial Data (US$)
Net income (loss) (in millions) 30,425 (2,722) 33,364 21,331 11,588
Earnings per share (EPS)2 2.93 -0.27 3.28 2.12 1.16
Share price1, 3 171.81 103.39 157.64 165.63 100.44
Valuation Ratio
P/E ratio4 58.66 48.08 78.20 86.30
Benchmarks
P/E Ratio, Competitors5
GameStop Corp.
Home Depot Inc. 17.09 19.94 24.51 17.38 18.87
Lowe’s Cos. Inc. 17.65 17.84 22.36 11.96 37.80
TJX Cos. Inc. 25.22 22.20 881.78 17.13 21.11
P/E Ratio, Sector
Consumer Discretionary Distribution & Retail 40.00 64.55 41.25 49.70 49.72
P/E Ratio, Industry
Consumer Discretionary 33.22 45.12 38.95 72.79 39.89

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= 30,425,000,000 ÷ 10,387,381,291 = 2.93

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 171.81 ÷ 2.93 = 58.66

5 Click competitor name to see calculations.


Price to Operating Profit (P/OP)

Amazon.com Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 10,387,381,291 10,247,259,757 10,176,888,200 10,071,294,860 9,956,208,880
Selected Financial Data (US$)
Operating income (in millions) 36,852 12,248 24,879 22,899 14,541
Operating profit per share2 3.55 1.20 2.44 2.27 1.46
Share price1, 3 171.81 103.39 157.64 165.63 100.44
Valuation Ratio
P/OP ratio4 48.43 86.50 64.48 72.85 68.77
Benchmarks
P/OP Ratio, Competitors5
GameStop Corp.
Home Depot Inc. 12.16 14.22 17.25 12.33 13.51
Lowe’s Cos. Inc. 11.18 12.45 13.52 8.11 21.77
TJX Cos. Inc. 18.15 15.32 137.02 12.69 15.31
P/OP Ratio, Sector
Consumer Discretionary Distribution & Retail 30.24 31.24 40.31 40.16 36.24
P/OP Ratio, Industry
Consumer Discretionary 28.83 26.92 40.71 58.48 30.81

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 36,852,000,000 ÷ 10,387,381,291 = 3.55

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 171.81 ÷ 3.55 = 48.43

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Amazon.com Inc. P/OP ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Sales (P/S)

Amazon.com Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 10,387,381,291 10,247,259,757 10,176,888,200 10,071,294,860 9,956,208,880
Selected Financial Data (US$)
Net sales (in millions) 574,785 513,983 469,822 386,064 280,522
Sales per share2 55.33 50.16 46.17 38.33 28.18
Share price1, 3 171.81 103.39 157.64 165.63 100.44
Valuation Ratio
P/S ratio4 3.10 2.06 3.41 4.32 3.56
Benchmarks
P/S Ratio, Competitors5
GameStop Corp. 1.19 1.11 2.50 0.04 0.12
Home Depot Inc. 1.86 2.17 2.39 1.77 1.94
Lowe’s Cos. Inc. 1.17 1.56 1.46 0.71 1.23
TJX Cos. Inc. 1.77 1.50 2.48 1.34 1.66
P/S Ratio, Sector
Consumer Discretionary Distribution & Retail 2.58 1.98 2.94 3.20 2.69
P/S Ratio, Industry
Consumer Discretionary 2.61 2.26 3.55 3.74 2.31

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 574,785,000,000 ÷ 10,387,381,291 = 55.33

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 171.81 ÷ 55.33 = 3.10

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Amazon.com Inc. P/S ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Price to Book Value (P/BV)

Amazon.com Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 10,387,381,291 10,247,259,757 10,176,888,200 10,071,294,860 9,956,208,880
Selected Financial Data (US$)
Stockholders’ equity (in millions) 201,875 146,043 138,245 93,404 62,060
Book value per share (BVPS)2 19.43 14.25 13.58 9.27 6.23
Share price1, 3 171.81 103.39 157.64 165.63 100.44
Valuation Ratio
P/BV ratio4 8.84 7.25 11.60 17.86 16.11
Benchmarks
P/BV Ratio, Competitors5
GameStop Corp. 5.33 4.18 29.11 0.45 0.77
Home Depot Inc. 187.12 95.58
Lowe’s Cos. Inc. 90.79 25.96 24.01
TJX Cos. Inc. 13.86 12.14 13.68 9.42 12.79
P/BV Ratio, Sector
Consumer Discretionary Distribution & Retail 11.61 10.99 14.36 19.95 19.41
P/BV Ratio, Industry
Consumer Discretionary 10.10 9.52 13.32 18.12 13.48

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 201,875,000,000 ÷ 10,387,381,291 = 19.43

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 171.81 ÷ 19.43 = 8.84

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Amazon.com Inc. P/BV ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.