Amazon.com Valuation

Is AMZN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AMZN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AMZN ($185.57) is trading below our estimate of fair value ($312.18)

Significantly Below Fair Value: AMZN is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for AMZN?

Other financial metrics that can be useful for relative valuation.

AMZN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.5x
Enterprise Value/EBITDA21.1x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

How does AMZN's PE Ratio compare to its peers?

The above table shows the PE ratio for AMZN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.5x
BABA Alibaba Group Holding
16.5x14.0%US$178.1b
PDD PDD Holdings
17.9x23.2%US$199.8b
MELI MercadoLibre
71x25.6%US$81.1b
JD JD.com
12.6x11.5%US$42.9b
AMZN Amazon.com
51.2x21.4%US$2.0t

Price-To-Earnings vs Peers: AMZN is expensive based on its Price-To-Earnings Ratio (51.2x) compared to the peer average (29.5x).


Price to Earnings Ratio vs Industry

How does AMZN's PE Ratio compare vs other companies in the North American Multiline Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AMZN is expensive based on its Price-To-Earnings Ratio (51.2x) compared to the Global Multiline Retail industry average (21.4x).


Price to Earnings Ratio vs Fair Ratio

What is AMZN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AMZN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio51.2x
Fair PE Ratio49.4x

Price-To-Earnings vs Fair Ratio: AMZN is expensive based on its Price-To-Earnings Ratio (51.2x) compared to the estimated Fair Price-To-Earnings Ratio (49.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AMZN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$185.57
US$218.28
+17.6%
6.4%US$245.00US$180.00n/a57
Jun ’25US$176.44
US$218.59
+23.9%
6.4%US$245.00US$180.00n/a56
May ’25US$179.00
US$215.44
+20.4%
6.8%US$245.00US$160.00n/a56
Apr ’25US$180.97
US$206.69
+14.2%
6.5%US$230.00US$150.00n/a56
Mar ’25US$178.22
US$203.93
+14.4%
8.2%US$230.00US$150.00n/a56
Feb ’25US$159.28
US$184.26
+15.7%
9.0%US$230.00US$150.00n/a52
Jan ’25US$151.94
US$177.23
+16.6%
10.2%US$230.00US$136.80n/a53
Dec ’24US$147.03
US$173.94
+18.3%
9.9%US$230.00US$136.80n/a52
Nov ’24US$137.00
US$172.43
+25.9%
10.1%US$230.00US$136.00n/a51
Oct ’24US$127.12
US$170.74
+34.3%
10.6%US$230.00US$135.00n/a49
Sep ’24US$138.12
US$169.95
+23.0%
11.2%US$230.00US$129.90n/a51
Aug ’24US$131.69
US$147.20
+11.8%
13.1%US$220.00US$99.00n/a52
Jul ’24US$130.36
US$142.96
+9.7%
13.5%US$220.00US$90.00n/a51
Jun ’24US$122.77
US$138.37
+12.7%
13.8%US$220.00US$90.00US$176.4447
May ’24US$102.05
US$138.71
+35.9%
14.3%US$220.00US$90.00US$179.0048
Apr ’24US$103.29
US$137.86
+33.5%
14.4%US$220.00US$90.00US$180.9749
Mar ’24US$92.17
US$137.80
+49.5%
13.9%US$210.00US$90.00US$178.2249
Feb ’24US$105.15
US$135.84
+29.2%
15.6%US$210.00US$80.00US$159.2848
Jan ’24US$84.00
US$141.06
+67.9%
17.7%US$250.00US$80.00US$151.9448
Dec ’23US$95.50
US$143.74
+50.5%
16.6%US$250.00US$103.00US$147.0347
Nov ’23US$96.79
US$146.04
+50.9%
19.0%US$250.00US$80.00US$137.0048
Oct ’23US$113.00
US$173.36
+53.4%
14.5%US$270.00US$110.00US$127.1249
Sep ’23US$127.82
US$173.71
+35.9%
14.7%US$270.00US$110.00US$138.1250
Aug ’23US$135.39
US$174.94
+29.2%
14.5%US$270.00US$110.00US$131.6951
Jul ’23US$109.56
US$175.90
+60.6%
15.7%US$270.00US$107.00US$130.3649
Jun ’23US$121.68
US$180.32
+48.2%
12.1%US$232.75US$112.50US$122.7749

Analyst Forecast: Target price is less than 20% higher than the current share price.


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