Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Amazon.com Inc., current price multiples
| Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | Consumer Discretionary Distribution & Retail | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||
| Current share price (P) | $209.69 | ||||||||
| No. shares of common stock outstanding | 10,616,352,407 | ||||||||
| Growth rate (g) | 17.08% | ||||||||
| Earnings per share (EPS) | $5.58 | ||||||||
| Next year expected EPS | $6.53 | ||||||||
| Operating profit per share | $6.46 | ||||||||
| Sales per share | $60.09 | ||||||||
| Book value per share (BVPS) | $26.94 | ||||||||
| Valuation Ratios (Price Multiples) | |||||||||
| Price to earnings (P/E) | 37.57 | 23.49 | 17.14 | 28.33 | 32.69 | 34.62 | |||
| Price to next year expected earnings | 32.09 | 4.83 | 4.69 | 20.51 | 26.23 | 28.40 | |||
| Price-earnings-growth (PEG) | 2.20 | 0.06 | 0.06 | 0.74 | 1.33 | 1.58 | |||
| Price to operating profit (P/OP) | 32.45 | 16.16 | 11.39 | 21.86 | 26.30 | 27.66 | |||
| Price to sales (P/S) | 3.49 | 2.18 | 1.42 | 2.44 | 3.04 | 3.05 | |||
| Price to book value (P/BV) | 7.78 | 52.39 | — | 16.42 | 10.14 | 9.90 | |||
Based on: 10-K (reporting date: 2024-12-31).
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
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).
- Price to Earnings (P/E) Ratio
- The P/E ratio shows a fluctuating trend over the years. Starting from a high value of 78.2 in 2020, it dropped significantly to 48.08 in 2021. The value for 2022 is missing, but in 2023, it increased again to 58.66 before declining to its lowest recorded point in this series, 40.99 in 2024. This indicates variability in market expectations about future earnings and possibly changes in profitability or investor sentiment.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio declined from 72.85 in 2020 to 64.48 in 2021, followed by a sharp increase to 86.5 in 2022. Subsequently, it decreased considerably over the next two years, reaching 48.43 in 2023 and further dropping to 35.4 in 2024. This trend suggests that operating profit valuations became more favorable relative to stock price after 2022, potentially reflecting improvements in operational efficiency or market adjustments.
- Price to Sales (P/S) Ratio
- The P/S ratio decreased notably from 4.32 in 2020 to 2.06 in 2022, suggesting that the market price became more justified by sales growth or higher sales relative to price during this period. However, it rose again in 2023 to 3.1 and further to 3.81 in 2024, indicating a partial rebound in valuation relative to sales, possibly reflecting investor confidence in future revenue or changes in sales trends.
- Price to Book Value (P/BV) Ratio
- There is a consistent downward movement from 17.86 in 2020 to 7.25 in 2022, indicating that the stock price became more aligned with the company’s book value and possibly that the market was adjusting to a less optimistic valuation compared to the book assets. A slight increase to 8.84 in 2023 was followed by a minor decrease to 8.49 in 2024, suggesting some stabilization in price relative to book value after the earlier periods of decline.
Price to Earnings (P/E)
Amazon.com Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 10,597,729,352 | 10,387,381,291 | 10,247,259,757 | 10,176,888,200 | 10,071,294,860 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) (in millions) | 59,248) | 30,425) | (2,722) | 33,364) | 21,331) | |
| Earnings per share (EPS)2 | 5.59 | 2.93 | -0.27 | 3.28 | 2.12 | |
| Share price1, 3 | 229.15 | 171.81 | 103.39 | 157.64 | 165.63 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 40.99 | 58.66 | — | 48.08 | 78.20 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Home Depot Inc. | 24.80 | 17.09 | 19.94 | 24.51 | 17.38 | |
| Lowe’s Cos. Inc. | 18.81 | 17.65 | 17.84 | 22.36 | 11.96 | |
| TJX Cos. Inc. | 24.63 | 25.22 | 22.20 | 881.78 | 17.13 | |
| P/E Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 35.33 | 39.66 | 63.32 | 40.84 | 49.11 | |
| P/E Ratio, Industry | ||||||
| Consumer Discretionary | 38.71 | 33.07 | 44.76 | 38.75 | 72.10 | |
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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= 59,248,000,000 ÷ 10,597,729,352 = 5.59
3 Closing price as at the filing date of Amazon.com Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 229.15 ÷ 5.59 = 40.99
5 Click competitor name to see calculations.
- Share Price
- The share price exhibits a fluctuating yet overall positive trend over the five-year period. Initially, it decreased from $165.63 at the end of 2020 to $157.64 in 2021, followed by a more pronounced decline to $103.39 in 2022. However, the share price recovered significantly in the subsequent years, rising to $171.81 in 2023 and further escalating to $229.15 by the end of 2024. This rebound indicates renewed investor confidence and market optimism toward the company's future prospects.
- Earnings per Share (EPS)
- The EPS values demonstrate considerable volatility throughout the timeframe. The company recorded a steady increase from $2.12 in 2020 to $3.28 in 2021. Nevertheless, 2022 saw a negative EPS of -$0.27, suggesting a loss during that fiscal year. Subsequently, the EPS resumed growth, climbing to $2.93 in 2023 and reaching a substantial $5.59 in 2024. The recovery and subsequent surge in EPS highlight improved profitability and operational performance following the setback in 2022.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio trends reflect the variability in earnings and investor valuation over time. Initially, the ratio was high at 78.2 in 2020, decreasing to 48.08 in 2021, indicating a relative reduction in market price per unit of earnings. The absence of a P/E ratio in 2022 is consistent with the negative EPS, as the ratio is typically undefined in such scenarios. In 2023, the P/E ratio rose again to 58.66, suggesting market optimism despite the EPS recovery. By the end of 2024, the ratio declined to 40.99, which, coupled with strong EPS growth, may indicate that the share price increase is becoming more aligned with earnings growth, reflecting a potentially more sustainable valuation.
Price to Operating Profit (P/OP)
Amazon.com Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 10,597,729,352 | 10,387,381,291 | 10,247,259,757 | 10,176,888,200 | 10,071,294,860 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 68,593) | 36,852) | 12,248) | 24,879) | 22,899) | |
| Operating profit per share2 | 6.47 | 3.55 | 1.20 | 2.44 | 2.27 | |
| Share price1, 3 | 229.15 | 171.81 | 103.39 | 157.64 | 165.63 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 35.40 | 48.43 | 86.50 | 64.48 | 72.85 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Home Depot Inc. | 17.32 | 12.16 | 14.22 | 17.25 | 12.33 | |
| Lowe’s Cos. Inc. | 12.58 | 11.18 | 12.45 | 13.52 | 8.11 | |
| TJX Cos. Inc. | 19.01 | 18.15 | 15.32 | 137.02 | 12.69 | |
| P/OP Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 28.43 | 30.02 | 30.89 | 39.89 | 39.83 | |
| P/OP Ratio, Industry | ||||||
| Consumer Discretionary | 30.92 | 28.71 | 26.77 | 40.49 | 58.11 | |
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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 68,593,000,000 ÷ 10,597,729,352 = 6.47
3 Closing price as at the filing date of Amazon.com Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 229.15 ÷ 6.47 = 35.40
5 Click competitor name to see calculations.
- Share Price
- The share price displayed fluctuating behavior over the observed period. Initially, it decreased from 165.63 US$ at the end of 2020 to 103.39 US$ by the end of 2022, showing a downward trend. However, from 2022 onwards, there was a marked recovery and increase, reaching 229.15 US$ by the end of 2024, the highest level recorded in the given data.
- Operating Profit per Share
- Operating profit per share exhibited some volatility during the period analyzed. It increased slightly from 2.27 US$ in 2020 to 2.44 US$ in 2021, followed by a significant decline to 1.2 US$ in 2022. Subsequently, the operating profit per share rebounded substantially, reaching 6.47 US$ by 2024, which represents a significant improvement and growth compared to earlier years.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio showed a declining trend over the period with certain fluctuations. It started at a relatively high level of 72.85 in 2020, decreased to 64.48 in 2021, and then rose again to 86.5 in 2022, indicating a momentary increase in the valuation relative to operating profit. After that, it steadily dropped to 35.4 by 2024, suggesting a growing operating profit relative to the share price, or a more attractive valuation based on operating profit.
Price to Sales (P/S)
Amazon.com Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 10,597,729,352 | 10,387,381,291 | 10,247,259,757 | 10,176,888,200 | 10,071,294,860 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 637,959) | 574,785) | 513,983) | 469,822) | 386,064) | |
| Sales per share2 | 60.20 | 55.33 | 50.16 | 46.17 | 38.33 | |
| Share price1, 3 | 229.15 | 171.81 | 103.39 | 157.64 | 165.63 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 3.81 | 3.10 | 2.06 | 3.41 | 4.32 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Home Depot Inc. | 2.46 | 1.86 | 2.17 | 2.39 | 1.77 | |
| Lowe’s Cos. Inc. | 1.68 | 1.17 | 1.56 | 1.46 | 0.71 | |
| TJX Cos. Inc. | 2.03 | 1.77 | 1.50 | 2.48 | 1.34 | |
| P/S Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 3.29 | 2.59 | 1.99 | 2.94 | 3.23 | |
| P/S Ratio, Industry | ||||||
| Consumer Discretionary | 3.41 | 2.62 | 2.27 | 3.56 | 3.77 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 637,959,000,000 ÷ 10,597,729,352 = 60.20
3 Closing price as at the filing date of Amazon.com Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 229.15 ÷ 60.20 = 3.81
5 Click competitor name to see calculations.
The analyzed financial data displays several notable trends over the five-year period ending December 31, 2024.
- Share Price (US$)
- Initially, the share price experienced a decline from $165.63 in 2020 to $103.39 in 2022, representing a significant decrease of approximately 38%. However, the period after 2022 shows a strong rebound, with the share price increasing to $171.81 in 2023 and further to $229.15 in 2024, ultimately surpassing the 2020 level by about 38%.
- Sales per Share (US$)
- Sales per share demonstrated consistent growth throughout the five years. Starting at $38.33 in 2020, the figure increased each year, reaching $60.20 by 2024. This steady upward trend reflects improving sales performance on a per-share basis, with an overall increase of roughly 57% over the period.
- Price-to-Sales Ratio (P/S)
- The P/S ratio initially decreased from 4.32 in 2020 to a low of 2.06 in 2022, indicating a period where the share price declined more sharply relative to sales growth. Thereafter, the ratio recovered to 3.10 in 2023 and further to 3.81 in 2024. Despite the recovery, the P/S ratio in 2024 remained below the 2020 level, suggesting that the market valuation relative to sales has somewhat normalized but not reached the earlier peak.
In summary, the company experienced a period of share price weakness up to 2022 despite increasing sales per share, followed by a robust market valuation recovery in the subsequent two years. The P/S ratio trend indicates a valuation adjustment in response to the market conditions, stabilizing closer to historical norms by 2024.
Price to Book Value (P/BV)
Amazon.com Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 10,597,729,352 | 10,387,381,291 | 10,247,259,757 | 10,176,888,200 | 10,071,294,860 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 285,970) | 201,875) | 146,043) | 138,245) | 93,404) | |
| Book value per share (BVPS)2 | 26.98 | 19.43 | 14.25 | 13.58 | 9.27 | |
| Share price1, 3 | 229.15 | 171.81 | 103.39 | 157.64 | 165.63 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 8.49 | 8.84 | 7.25 | 11.60 | 17.86 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Home Depot Inc. | 359.76 | 187.12 | — | 95.58 | — | |
| Lowe’s Cos. Inc. | — | — | — | 90.79 | 25.96 | |
| TJX Cos. Inc. | 15.09 | 13.86 | 12.14 | 13.68 | 9.42 | |
| P/BV Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 10.96 | 11.65 | 11.07 | 14.31 | 20.07 | |
| P/BV Ratio, Industry | ||||||
| Consumer Discretionary | 11.07 | 10.11 | 9.55 | 13.30 | 18.17 | |
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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 285,970,000,000 ÷ 10,597,729,352 = 26.98
3 Closing price as at the filing date of Amazon.com Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 229.15 ÷ 26.98 = 8.49
5 Click competitor name to see calculations.
- Share Price
- The share price experienced a decline from 165.63 US$ in 2020 to 103.39 US$ in 2022, reflecting a notable decrease over the first three years. However, it recovered substantially in the following years, increasing to 171.81 US$ in 2023 and further to 229.15 US$ in 2024, indicating a strong upward trend in the most recent periods.
- Book Value per Share (BVPS)
- The book value per share showed consistent growth throughout the period, rising from 9.27 US$ in 2020 to 26.98 US$ in 2024. This steady increase suggests an expansion in the company's net asset value per share over the years, reflecting an improving financial position on a per-share basis.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio exhibited a declining trend from 17.86 in 2020 to 7.25 in 2022, indicating that the market valuation relative to the book value per share became more conservative during this time. There was a moderate increase in the ratio to 8.84 in 2023, followed by a slight decrease to 8.49 in 2024. Despite the recent fluctuations, the ratio in 2024 remains significantly lower than in 2020, suggesting that while market valuations have rebounded, they have not returned to earlier elevated levels relative to book value.