Amazon.com Inc. (NASDAQ:AMZN)

Price to Earnings (P/E) Ratio

The Price to Earnings (P/E) ratio demonstrates significant volatility across the examined periods. Starting without data initially, the ratio was 78.2 at the end of the first observed year and generally trended downward over the subsequent quarters, reaching a low point of 30.58 towards the end of the timeframe. Notably, there were sharp spikes around late 2022 and early 2023, peaking at 251.97, which suggests periods of increased investor expectations or potentially lower earnings. Overall, the trend suggests a gradual normalization or reduction in valuation multiples relative to earnings, with the ratio settling into a lower range by the end of the period.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio mirrors the P/E ratio in exhibiting fluctuation but with less pronounced extremes. It started relatively high at 72.85 and showed a downward trend with some oscillations, declining to about 28.13 by the latest data point. This indicates that the market valuation relative to operating profit has contracted, possibly reflecting improved operating profits or more cautious investor sentiment. Temporary increases were observed in early 2023 but were followed by a steady decline, suggesting that operating profit valuations tightened over time.

Price to Sales (P/S) Ratio

The Price to Sales ratio exhibited a distinct downward trend from initial levels around 4.32 to around 2.06 by late 2021, indicating a reduction in market valuation per unit of sales revenue. Following this period, the ratio fluctuated between approximately 2.06 and 3.81, showing moderate volatility but maintaining a generally lower level than at the start. This pattern suggests a relative stabilization of sales valuation, with market pricing aligning more closely with revenue rather than operating or net earnings metrics during the later periods.

Price to Book Value (P/BV) Ratio

This ratio experienced a marked and consistent decline from an initial peak of 21.5 early in the data to levels approaching approximately 6.59–8.6 in the latter part of the series. The declining trend indicates that the market price relative to book value has decreased substantially over the period, potentially reflecting adjustments in equity valuation, asset base growth, or changes in investor perception of the company’s intrinsic value. The downward pressure on the P/BV ratio was relatively steady, with no notable upward reversals, suggesting a long-term market revaluation of net asset value.

The analysis of the quarterly financial data reveals several important trends regarding the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the examined periods.

Share Price

The share price experienced notable fluctuations throughout the period. Initially, there was a rise from $114.3 in March 2020 to a peak around $173.37 in March 2021, reflecting strong market sentiment. Following this, the price declined significantly to a low near $103.39 by December 2022. However, from early 2023 onwards, the price showed a pronounced upward trend, reaching a peak of $229.15 in March 2025. There were minor intermittent dips, yet the overall movement in the latter period indicates renewed positive investor confidence and potentially improved company fundamentals.

Earnings Per Share (EPS)

The EPS data reveals an upward trajectory from 2.12 in March 2021 to 6.62 by June 2025, marking notable earnings growth across the periods. The EPS slightly contracted around December 2022, registering a negative value (-0.27), which signals a temporary decline in profitability. Following this anomaly, EPS rebounded steadily, increasing quarter-over-quarter, indicative of improving earnings performance and operational efficiency. The consistent EPS growth in the final observed quarters suggests stronger profitability and enhanced shareholder value.

Price-to-Earnings (P/E) Ratio

The P/E ratio demonstrates significant volatility. Initially, it decreased from 78.2 in March 2021 to about 39.67 by September 2024, implying that earnings grew faster than the share price during this timeframe. The ratio spiked dramatically around the quarter corresponding to a significant EPS drop, reaching as high as 251.97, indicating an overvaluation relative to earnings or market apprehension due to the earnings decline. After this spike, the P/E ratio normalized and steadily declined towards the end of the period, stabilizing in the low 30s, which may reflect a more balanced valuation consistent with the rising EPS and share price trends.

Overall, the data suggests a company that faced short-term earnings challenges around late 2022, reflected in its EPS dip and elevated P/E ratio. However, the subsequent strong growth in earnings and recovery in share price indicate improved financial health and positive market reassessment through 2023 to mid-2025. The alignment of share price growth with robust EPS increases and normalization of the P/E ratio points to enhanced investor confidence and sustainable value creation over the longer term.

The analysis of the quarterly financial data indicates several noteworthy trends in the stock price, operating profit per share, and the price-to-operating profit ratio over the observed periods.

Share Price

The share price showed an upward trend from early 2020, peaking notably in late 2021, followed by a slight decline and some volatility through 2022. From the beginning of 2023 onward, the price demonstrated a general recovery and a strong upward trajectory, reaching its highest levels in the final quarters of 2024 and early 2025. Despite some fluctuations, the overall pattern suggests increasing market valuation over the extended timeframe.

Operating Profit Per Share

Operating profit per share was initially absent for the first several quarters but appeared starting in December 2020. Since its introduction, it followed a steady upward trajectory, increasing from around $2.27 to $7.14 by the first quarter of 2025. This consistent improvement reflects enhanced profitability on a per-share basis, indicative of operational efficiencies or revenue growth.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio exhibited a declining trend from its initial high values around 73 in late 2020 to approximately 30 by mid-2025. This reduction indicates that the market price per unit of operating profit has become more favorable over time, potentially reflecting reduced investor risk perception or improved earnings quality. Notably, the ratio experienced some temporary increases during mid-2022 and mid-2023, coinciding with share price volatility and slower growth in operating profit per share.

Overall, the data illustrates a company experiencing increasing operational profitability alongside rising market capitalization, with valuation metrics suggesting improving investor sentiment and balanced growth expectations.

Share Price Trends

The share price exhibited significant volatility over the observed periods. Initially, it rose from 114.3 USD in March 2020 to a peak of around 173.37 USD by March 2021. Following this peak, a decline took place, with the share price falling to a low of approximately 103.39 USD in December 2022. After this trough, the price demonstrated a recovery trend, reaching a high of 229.15 USD in December 2024 before a moderate correction towards 214.75 USD by June 2025.

Sales per Share Patterns

Sales per share data started from March 2021, showing a steady and gradual increase over time. From 38.33 USD in March 2021, sales per share consistently rose each quarter, reaching 62.83 USD by June 2025. This steady growth suggests ongoing expansion in the company's revenue per share, reflecting either rising total sales or share count optimization.

Price-to-Sales (P/S) Ratio Dynamics

The P/S ratio demonstrates notable fluctuations throughout the timeline. Initially posted at 4.32 in March 2021, the ratio declined sharply to lows around 2.06 by late 2022. This decrease suggests either a relative undervaluation of the share price relative to sales or more rapid sales growth compared to the share price. Post-2022, the P/S ratio rebounded, reaching levels near 3.81 by March 2025, indicating a renewed investor confidence and higher market valuation relative to sales at that time. The fluctuation in the P/S ratio reflects changing market perceptions about valuation and growth prospects.

Interrelation between Share Price, Sales Per Share, and P/S Ratio

The concurrent rise in sales per share and fluctuating share price resulted in varying P/S ratios. During periods when share prices declined more sharply than sales per share increased (e.g., late 2021 to late 2022), the P/S ratio contracted significantly. Conversely, when the share price recovered robustly after late 2022, the P/S ratio increased despite continued growth in sales per share, indicating a market valuation premium. Overall, the patterns suggest that while revenue growth has been consistent and positive, stock price movements have been influenced by broader market sentiment and valuation adjustments.

The share price exhibits considerable volatility throughout the examined periods, showing an initial uptrend from March 2020 through March 2021, peaking near the end of 2021 before experiencing a correction. After a significant dip through 2022, the price recovers sharply in 2023 and early 2024, reaching new highs by mid-2024. Subsequent quarters show some fluctuations but generally maintain elevated levels relative to earlier years.

Book value per share (BVPS) demonstrates a consistent upward trajectory over the entire period. Starting at a relatively low base in early 2020, the BVPS increases steadily each quarter, reflecting a growth in net asset value per share. This gradual increase suggests ongoing accumulation of equity or retained earnings, indicating strengthening underlying fundamentals.

The price-to-book value ratio (P/BV) reveals a declining trend from early 2020 through the end of 2022, indicating that the share price grew at a slower pace or was revalued downward relative to book value during this period. This ratio bottoms out around late 2022 and early 2023, after which it fluctuates moderately. Despite rebounds in the share price from 2023 onward, the P/BV remains substantially lower than the earlier 2020 highs, indicating the market values the equity at a more conservative premium compared to its book value.

Overall, the data reflect a company whose intrinsic book value has grown steadily, while market valuation metrics declined during a period of price volatility, possibly reflecting market reassessments. The resurgence in share price in 2023 and 2024 suggests renewed investor confidence, though the valuation multiples remain below prior peaks, indicating more balanced market expectations relative to fundamentals.

Share Price

Initial growth from 114.3 US$ in March 2020 to peaks exceeding 170 US$ in late 2021.

Significant decline through 2022 to around 103 US$, followed by recovery and new highs approaching 229 US$ by mid-2024.

Fluctuations continue in late 2024 and early 2025 but remain higher relative to early period values.

Book Value per Share (BVPS)

Consistent growth from 6.54 US$ in March 2020 to 31.3 US$ by June 2025.

Indicates steady increase in net asset value and equity strength over time.

Price-to-Book Value Ratio (P/BV)

Declined sharply from 17.47 in March 2020 to lows near 6.59 by mid-2025.

Reflects decreasing market premium on equity despite rising book value.

Post-2022 period shows moderated fluctuations, suggesting recalibrated investor expectations.