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).
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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) | |||||||||
| No. shares of common stock outstanding | |||||||||
| Growth rate (g) | |||||||||
| Earnings per share (EPS) | |||||||||
| Next year expected EPS | |||||||||
| Operating profit per share | |||||||||
| Sales per share | |||||||||
| Book value per share (BVPS) | |||||||||
| Valuation Ratios (Price Multiples) | |||||||||
| Price to earnings (P/E) | |||||||||
| Price to next year expected earnings | |||||||||
| Price-earnings-growth (PEG) | |||||||||
| Price to operating profit (P/OP) | |||||||||
| Price to sales (P/S) | |||||||||
| Price to book value (P/BV) | |||||||||
Based on: 10-K (reporting date: 2025-12-31).
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
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2025-12-31), 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).
The valuation ratios exhibit varied trends over the five-year period. Generally, a decreasing trend is apparent across most ratios, suggesting a potential shift in market perception of the company’s value relative to its fundamentals.
- Price to Earnings (P/E)
- The Price to Earnings ratio demonstrates considerable fluctuation. It stood at 48.08 in 2021, was unavailable for 2022, then increased to 58.66 in 2023 before declining to 40.99 in 2024 and further to 29.07 in 2025. This suggests decreasing investor willingness to pay for each dollar of earnings, or potentially, expectations of slower earnings growth.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio initially increased significantly from 64.48 in 2021 to 86.50 in 2022, then decreased consistently to 48.43 in 2023, 35.40 in 2024, and 28.23 in 2025. This pattern mirrors the P/E ratio trend, indicating a diminishing premium investors are assigning to the company’s operating profitability.
- Price to Sales (P/S)
- The Price to Sales ratio decreased from 3.41 in 2021 to a low of 2.06 in 2022, then experienced an increase to 3.10 in 2023, followed by a rise to 3.81 in 2024, and a slight decrease to 3.15 in 2025. This indicates a fluctuating relationship between market capitalization and revenue, with a recent softening in the ratio.
- Price to Book Value (P/BV)
- The Price to Book Value ratio declined steadily from 11.60 in 2021 to 7.25 in 2022, 8.84 in 2023, 8.49 in 2024, and finally to 5.49 in 2025. This consistent decrease suggests a diminishing market valuation of the company’s net assets, potentially reflecting concerns about asset utilization or future returns on equity.
Overall, the observed trends suggest a decreasing valuation across multiple metrics. The most pronounced declines are seen in the P/E and P/BV ratios, while the P/S ratio shows more volatility. The increase in P/OP in 2022 is an anomaly within the broader downward trend. These shifts may warrant further investigation into the underlying drivers of the company’s performance and market sentiment.
Price to Earnings (P/E)
Amazon.com Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Home Depot Inc. | ||||||
| Lowe’s Cos. Inc. | ||||||
| TJX Cos. Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | ||||||
| P/E Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Amazon.com Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited considerable fluctuation over the observed period. Initial values were high, followed by a period of unavailability, then a return to elevated levels before declining towards the end of the period.
- P/E Ratio Trend
- In 2021, the P/E ratio stood at 48.08. The ratio was not reported for 2022. In 2023, the P/E ratio increased to 58.66, representing a substantial rise from the 2021 level. A subsequent decrease was observed in 2024, with the P/E ratio falling to 40.99. This downward trend continued into 2025, with the P/E ratio reaching 29.07.
- Share Price and EPS Relationship
- The share price experienced a decline from US$157.64 in 2021 to US$103.39 in 2022, before recovering to US$171.81 in 2023 and further increasing to US$229.15 in 2024. A slight decrease to US$210.32 was noted in 2025. Earnings per share (EPS) were US$3.28 in 2021, followed by a loss of US$0.27 in 2022. EPS recovered to US$2.93 in 2023, and then increased significantly to US$5.59 in 2024 and US$7.24 in 2025. The fluctuations in the P/E ratio appear to be influenced by the combined effect of share price movements and changes in EPS.
The absence of a P/E ratio calculation for 2022 is directly attributable to the negative earnings per share reported for that year. A negative EPS results in an undefined P/E ratio. The decreasing P/E ratio from 2023 to 2025 suggests that earnings growth outpaced share price appreciation during that period.
Price to Operating Profit (P/OP)
Amazon.com Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Home Depot Inc. | ||||||
| Lowe’s Cos. Inc. | ||||||
| TJX Cos. Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | ||||||
| P/OP Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Amazon.com Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio decreased from 2022 to 2023, then demonstrated a consistent decline through 2025. This movement occurred alongside changes in both share price and operating profit per share.
- Share Price
- The share price experienced a significant decrease from 2021 to 2022, falling from US$157.64 to US$103.39. A subsequent recovery occurred through 2024, reaching US$229.15, before declining slightly to US$210.32 in 2025.
- Operating Profit Per Share
- Operating profit per share decreased substantially from US$2.44 in 2021 to US$1.20 in 2022. A strong upward trend followed, with operating profit per share increasing to US$3.55 in 2023, US$6.47 in 2024, and further to US$7.45 in 2025. This indicates improving operational efficiency or profitability.
- P/OP Ratio Trend
- The P/OP ratio peaked at 86.50 in 2022, coinciding with the lowest operating profit per share and a decreased share price. The ratio then decreased to 48.43 in 2023, 35.40 in 2024, and 28.23 in 2025. This decline suggests that the market was valuing each dollar of operating profit at a decreasing multiple, potentially reflecting increased investor confidence in future earnings or a shift in market sentiment. The decreasing ratio occurred despite the increasing operating profit per share, indicating that share price growth did not keep pace with the growth in operating profitability.
The interplay between share price and operating profit per share significantly influenced the P/OP ratio. The initial increase in the ratio in 2022 was driven by a larger decrease in operating profit per share than in share price. The subsequent decline in the P/OP ratio from 2023 to 2025 was primarily due to the substantial growth in operating profit per share, which outpaced the changes in share price.
Price to Sales (P/S)
Amazon.com Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Home Depot Inc. | ||||||
| Lowe’s Cos. Inc. | ||||||
| TJX Cos. Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | ||||||
| P/S Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Amazon.com Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased significantly before stabilizing and then increasing again. Share price and sales per share both demonstrated overall growth, though not consistently year-over-year, influencing the observed ratio movements.
- Price-to-Sales Ratio
- The price-to-sales ratio began at 3.41 in 2021. A substantial decline was noted in 2022, with the ratio falling to 2.06. This decrease suggests a potential undervaluation relative to sales, or a market correction. The ratio then increased to 3.10 in 2023, indicating a partial recovery in valuation. Further growth was observed in 2024, reaching 3.81, the highest value in the observed period. However, the ratio decreased slightly in 2025 to 3.15.
- Share Price
- The share price experienced a decrease from US$157.64 in 2021 to US$103.39 in 2022. A recovery was then observed, with the price rising to US$171.81 in 2023 and continuing to US$229.15 in 2024. A modest decline occurred in 2025, settling at US$210.32. This pattern suggests periods of investor pessimism followed by renewed confidence.
- Sales per Share
- Sales per share demonstrated consistent growth throughout the period. It increased from US$46.17 in 2021 to US$50.16 in 2022, US$55.33 in 2023, US$60.20 in 2024, and finally to US$66.78 in 2025. This steady increase in sales per share likely contributed to the stabilization and subsequent rise in the price-to-sales ratio after the initial decline.
The interplay between share price and sales per share resulted in the observed fluctuations in the price-to-sales ratio. The initial drop in the ratio in 2022 was likely driven by a more significant decrease in share price than the increase in sales per share. The subsequent increases were influenced by both rising share prices and continued growth in sales per share, although the 2025 decrease in the ratio indicates that sales growth did not fully offset the slight decline in share price.
Price to Book Value (P/BV)
Amazon.com Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Home Depot Inc. | ||||||
| Lowe’s Cos. Inc. | ||||||
| TJX Cos. Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | ||||||
| P/BV Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Amazon.com Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price-to-book value ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio decreased significantly before stabilizing and then declining again. This movement correlates with changes in both share price and book value per share.
- Price-to-Book Value (P/BV) Trend
- The P/BV ratio began at 11.60 in 2021. A substantial decrease was observed in 2022, falling to 7.25. The ratio experienced a moderate recovery in 2023, reaching 8.84, followed by a slight decline to 8.49 in 2024. The most significant decrease occurred in 2025, with the P/BV ratio dropping to 5.49.
- Share Price Behavior
- The share price mirrored the initial decline seen in the P/BV ratio, decreasing from US$157.64 in 2021 to US$103.39 in 2022. A recovery was then noted, with the share price rising to US$171.81 in 2023 and further increasing to US$229.15 in 2024. However, the share price decreased in 2025 to US$210.32.
- Book Value Per Share (BVPS) Progression
- Book value per share demonstrated a consistent upward trend throughout the period. It increased from US$13.58 in 2021 to US$14.25 in 2022, US$19.43 in 2023, US$26.98 in 2024, and reached US$38.29 in 2025. This consistent growth in BVPS partially offset the share price volatility, influencing the P/BV ratio.
The decreasing P/BV ratio in 2025, despite the continued increase in book value per share, suggests that the market may be valuing the company’s assets at a lower multiple relative to its net asset value. The initial decline in the ratio in 2022 was likely driven by a more substantial decrease in share price than the increase in book value per share. The subsequent stabilization and then further decline indicate a complex interplay between market sentiment and the company’s underlying asset value.