We’ve recently updated our valuation analysis.

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

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue2x
Enterprise Value/EBITDA19.6x
PEG Ratio1.5x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average46.7x
BABA Alibaba Group Holding
127.4x29.2%US$233.9b
AAPL Apple
22.7x2.9%US$2.3t
GOOGL Alphabet
18.1x12.4%US$1.2t
MSFT Microsoft
26.4x13.6%US$1.8t
AMZN Amazon.com
81.4x54.7%US$921.7b

Price-To-Earnings vs Peers: AMZN is expensive based on its Price-To-Earnings Ratio (81.4x) compared to the peer average (48.7x).


Price to Earnings Ratio vs Industry

How does AMZN's PE Ratio compare vs other companies in the US Online Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a45.9%
n/an/an/a

Price-To-Earnings vs Industry: AMZN is expensive based on its Price-To-Earnings Ratio (81.4x) compared to the US Online Retail industry average (26.4x)


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 Ratio81.4x
Fair PE Ratio72.1x

Price-To-Earnings vs Fair Ratio: AMZN is expensive based on its Price-To-Earnings Ratio (81.4x) compared to the estimated Fair Price-To-Earnings Ratio (72.3x).


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 ($90.35) is trading below our estimate of fair value ($222.79)

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


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$90.35
US$142.41
+57.6%
17.7%US$250.00US$80.00n/a48
Dec ’23US$95.50
US$143.74
+50.5%
16.6%US$250.00US$103.00n/a47
Nov ’23US$96.79
US$146.04
+50.9%
19.0%US$250.00US$80.00n/a48
Oct ’23US$113.00
US$173.36
+53.4%
14.5%US$270.00US$110.00n/a49
Sep ’23US$127.82
US$173.71
+35.9%
14.7%US$270.00US$110.00n/a50
Aug ’23US$135.39
US$174.94
+29.2%
14.5%US$270.00US$110.00n/a51
Jul ’23US$109.56
US$175.90
+60.6%
15.7%US$270.00US$107.00n/a49
Jun ’23US$121.68
US$180.32
+48.2%
12.1%US$232.75US$112.50n/a49
May ’23US$124.28
US$186.29
+49.9%
10.9%US$232.75US$112.50n/a49
Apr ’23US$163.56
US$205.00
+25.3%
8.1%US$250.00US$140.00n/a48
Mar ’23US$151.14
US$206.45
+36.6%
6.8%US$250.00US$166.65n/a46
Feb ’23US$151.19
US$206.01
+36.3%
6.3%US$250.00US$180.00n/a46
Jan ’23US$166.72
US$206.26
+23.7%
6.1%US$250.00US$188.55n/a47
Dec ’22US$172.19
US$205.66
+19.4%
5.6%US$250.00US$188.75US$95.5047
Nov ’22US$165.91
US$205.55
+23.9%
5.5%US$250.00US$188.75US$96.7946
Oct ’22US$164.16
US$209.11
+27.4%
6.0%US$250.00US$188.75US$113.0046
Sep ’22US$173.95
US$208.55
+19.9%
5.9%US$250.00US$188.75US$127.8243
Aug ’22US$166.38
US$208.30
+25.2%
5.9%US$250.00US$188.75US$135.3944
Jul ’22US$171.65
US$211.92
+23.5%
6.8%US$275.00US$188.75US$109.5644
Jun ’22US$160.93
US$212.26
+31.9%
6.9%US$275.00US$188.75US$121.6844
May ’22US$173.37
US$210.81
+21.6%
7.1%US$275.00US$187.50US$124.2844
Apr ’22US$158.05
US$201.47
+27.5%
6.5%US$260.00US$185.00US$163.5643
Mar ’22US$157.31
US$202.83
+28.9%
6.8%US$260.00US$185.00US$151.1445
Feb ’22US$167.14
US$192.92
+15.4%
5.6%US$225.00US$175.00US$151.1943
Jan ’22US$162.85
US$191.34
+17.5%
5.7%US$225.00US$175.00US$166.7246
Dec ’21US$161.00
US$191.09
+18.7%
5.5%US$225.00US$175.00US$172.1946

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies