Amazon.com Inc. (NASDAQ:AMZN)

The valuation ratios exhibit varied trends over the observed period. Generally, a decreasing trend is apparent across most ratios from the beginning of the period through the end of 2025, suggesting a potential shift in investor sentiment or company performance relative to its price.

Price to Earnings (P/E) Ratio

The Price to Earnings ratio demonstrates significant volatility. It increased substantially from March 2022 to June 2022, peaking at 118.45, before declining to 93.17 by September 2022. The ratio then experienced a dramatic surge to 251.97 in March 2023, followed by a consistent decline through December 2025, reaching 29.07. This suggests earnings growth may not have kept pace with price increases during certain periods, or that investor expectations regarding future earnings have shifted.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio generally followed a downward trajectory. While fluctuating between 64.24 and 89.87 in the first half of the period, it decreased steadily from 81.03 in March 2023 to 28.23 by December 2025. This indicates that the market value relative to the company’s operating profitability has decreased over time.

Price to Sales (P/S) Ratio

The Price to Sales ratio showed moderate fluctuations. It began at 2.65 in March 2022 and experienced a peak of 3.81 in December 2024. However, it generally remained within the 2.10 to 3.78 range throughout the period, ending at 3.15 in December 2025. This suggests a relatively stable relationship between market capitalization and revenue generation.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio exhibited a declining trend. Starting at 9.44 in March 2022, it decreased to 5.49 by December 2025. This suggests that the market value of the company’s equity is becoming less reliant on its net asset value, potentially reflecting changes in growth prospects or investor perception of asset quality.

Overall, the observed trends suggest a potential recalibration of market valuation relative to the company’s earnings, operating profit, sales, and book value. The consistent decline in P/E, P/OP, and P/BV ratios, particularly towards the end of the period, warrants further investigation into the underlying drivers of these changes.

The price-to-earnings (P/E) ratio exhibits considerable fluctuation over the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values are notably high, followed by a period of decline and subsequent stabilization before experiencing renewed variability.

Initial High Valuation (Mar 31, 2022 - Jun 30, 2022)

The P/E ratio began at 59.05 and increased substantially to 118.45 by June 30, 2022. This suggests a period of heightened investor optimism or potentially overvaluation relative to earnings during this timeframe. The share price increased from US$124.28 to US$134.95, while earnings per share (EPS) decreased from US$2.10 to US$1.14, contributing to the ratio’s increase.

Decline and Volatility (Sep 30, 2022 - Dec 31, 2022)

A decrease in the P/E ratio is observed from September 30, 2022 (93.17) to December 31, 2022 (-0.27). The negative EPS value in December 2022 resulted in an undefined P/E ratio, indicating a net loss for the period. The share price also decreased from US$103.41 to US$103.39.

Recovery and Stabilization (Mar 31, 2023 - Dec 31, 2023)

From March 31, 2023, through December 31, 2023, the P/E ratio demonstrates a recovery, moving from 251.97 to 58.66. This coincides with a substantial increase in EPS, from US$0.42 to US$2.93, and a corresponding increase in share price from US$105.45 to US$171.81. The ratio appears to be normalizing as earnings improve.

Continued Fluctuation (Mar 31, 2024 - Dec 31, 2025)

The P/E ratio continues to fluctuate between 30.58 and 49.43 during the period from March 31, 2024, to December 31, 2025. While the ratio generally trends downward from 49.43 to 29.07, it remains within a relatively narrow range. EPS consistently increases throughout this period, from US$3.62 to US$7.24, while the share price experiences both increases and decreases. The ratio’s movement suggests a dynamic interplay between earnings growth and investor sentiment.

Overall, the P/E ratio demonstrates a pattern of initial high valuation, a period of significant volatility linked to earnings fluctuations, and a subsequent period of relative stabilization with continued, albeit moderate, fluctuation. The observed changes suggest sensitivity to both earnings performance and market perceptions.

The Price to Operating Profit (P/OP) ratio exhibits considerable fluctuation over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio demonstrated a high degree of volatility, followed by a period of relative stabilization, and then a renewed trend of change. A general observation is a decreasing trend in the ratio over the entire period, although this is not consistent quarter to quarter.

Initial Volatility (Mar 31, 2022 – Dec 31, 2022)

The P/OP ratio began at 64.24 and experienced a peak of 89.87 before declining to 86.50. This initial period suggests a dynamic market perception of the company’s operating profitability relative to its share price. The fluctuations could be attributed to broader market conditions or company-specific news impacting investor sentiment.

Stabilization and Decline (Mar 31, 2023 – Dec 31, 2023)

From March 31, 2023, through December 31, 2023, the P/OP ratio showed a more pronounced downward trend, decreasing from 81.03 to 48.43. This decline coincided with an increase in operating profit per share, indicating that the share price was not increasing at the same rate as profitability. The ratio reached its lowest point during this period.

Continued Decline and Recent Trends (Mar 31, 2024 – Dec 31, 2025)

The ratio continued to decrease through March 31, 2024, reaching 39.31, before experiencing some fluctuation. It peaked at 35.40 in September 2024, then decreased to 28.13 by March 31, 2025. The most recent quarters show a slight increase, culminating in a ratio of 28.23 by December 31, 2025. This suggests a potential stabilization or a modest re-evaluation by investors, although the ratio remains significantly lower than its levels in 2022.

The observed trend suggests that the market has, over time, placed a lower valuation on each dollar of operating profit generated by the company. This could be due to changing investor expectations, increased competition, or concerns about future growth prospects. The recent stabilization, however, warrants further investigation to determine if it represents a sustained shift in market sentiment.

Relationship to Operating Profit per Share

The P/OP ratio’s movements are inversely related to the changes in operating profit per share. As operating profit per share increased from US$3.55 in December 2023 to US$7.45 in December 2025, the P/OP ratio generally decreased, indicating that the share price did not fully reflect the growth in profitability. This could suggest that investors were anticipating future challenges or were not fully valuing the increased earnings.

The price-to-sales (P/S) ratio exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicated a moderate valuation, followed by periods of both increase and decrease, ultimately concluding with a P/S ratio comparable to the beginning of the analyzed timeframe.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The P/S ratio began at 2.65 and increased to 2.83 before declining to 2.06 by the end of 2022. This suggests a period of initial investor optimism followed by a re-evaluation, potentially due to changing market conditions or company-specific factors impacting sales expectations. The share price experienced a similar pattern, peaking in June 2022 and then declining.

Recovery and Expansion (Mar 31, 2023 – Dec 31, 2023)

From March 2023 through December 2023, the P/S ratio demonstrated a recovery, rising from 2.06 to 3.10. This coincided with an increase in both share price and sales per share, indicating positive investor sentiment and potentially improved company performance. The most significant increase in the P/S ratio occurred between March and December 2023.

Peak and Subsequent Adjustment (Mar 31, 2024 – Jun 30, 2025)

The P/S ratio peaked at 3.81 in December 2024, before experiencing a decline to 3.15 by December 2025. This suggests a potential overvaluation followed by a correction. While sales per share continued to increase throughout this period, the rate of increase in the P/S ratio slowed and then reversed. The share price mirrored this trend, peaking in December 2024 and then decreasing.

Sales per Share Trend

Throughout the entire period, sales per share consistently increased, moving from 46.96 to 66.78. This indicates consistent revenue growth relative to the number of outstanding shares. However, the P/S ratio did not always move in direct correlation with sales per share, suggesting that investor expectations and broader market factors also played a significant role in valuation.

In summary, the P/S ratio demonstrated a dynamic pattern over the analyzed period, influenced by both company-specific performance, as reflected in sales per share, and broader market sentiment. The ratio experienced periods of growth, decline, and stabilization, ultimately returning to a level comparable to its initial value, despite consistent growth in sales per share.

The price-to-book value (P/BV) ratio exhibited fluctuating behavior over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio demonstrated a decline from 9.44 to a low of 7.25 before stabilizing and then increasing again towards the end of the period.

Initial Decline (Mar 31, 2022 – Dec 31, 2022)

From March 31, 2022, to December 31, 2022, the P/BV ratio decreased from 9.44 to 7.25. This decline occurred alongside a decrease in share price and a concurrent increase in book value per share. The initial high value of 9.44 suggests a relatively high valuation compared to the company’s net asset value at that time, while the subsequent decrease indicates a convergence between price and book value.

Fluctuation and Increase (Mar 31, 2023 – Dec 31, 2024)

The period from March 31, 2023, to December 31, 2024, showed a fluctuating pattern. The P/BV ratio increased to 8.84, then decreased to 7.45, and subsequently rose to 8.49. This fluctuation coincided with corresponding changes in both share price and book value per share, indicating a dynamic relationship between these variables. The book value per share consistently increased during this period, while the share price experienced more volatility.

Recent Trend (Mar 31, 2025 – Dec 31, 2025)

A notable decrease in the P/BV ratio was observed from March 31, 2025, to December 31, 2025, falling from 6.59 to 5.49. This decrease occurred despite a continued increase in book value per share, suggesting a more significant decline in share price during this period. The final value of 5.49 represents the lowest P/BV ratio recorded within the analyzed timeframe.

Overall, the P/BV ratio demonstrated a general tendency to decrease over the entire period, particularly in the latter half. While fluctuations were present, the final ratio of 5.49 indicates a lower valuation relative to book value compared to the beginning of the observed period. The consistent increase in book value per share throughout the period suggests that the decrease in the P/BV ratio is primarily driven by changes in market perception of the company’s share price.