P/E ratio as of January 2025 (TTM): 45.8
According to Amazon's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 45.8033. At the end of 2023 the company had a P/E ratio of 51.3.
The intrinsic value of one AMZN stock under the Base Case scenario is 133.94 USD. Compared to the current market price of 218.46 USD, Amazon.com Inc is Overvalued by 39%.
Their PE ratio instills doubt into a lot of investors; on paper it looks like an expensive company currently. However, the reason why that is, is because they underreport earnings. They reinvest so much into their business, and this expense hurts net income, thus high PE.
To give you some sense of what the average for the market is, though, many value investors would refer to 20 to 25 as the average P/E ratio range. And again, like golf, the lower the P/E ratio a company has, the better an investment the metric is saying it is.
Amazon (AMZN) operates the world's largest e-commerce platform and cloud storage solution. The largest individual shareholder is founder Jeff Bezos with around 508 million shares. The largest institutional shareholder is the Vanguard Group with around 324 million shares.
The Future of Amazon
Forecasters predict that Amazon will reach $200 per share a year from now and will continue to rise to $250 per share at the end of 2026. In 2027, the prediction is for a price of $300, and $250 by the end of 2028.
Analysts See 13% Upside For Amazon Stock
The 30-year-old Amazon is among the world's most valuable companies. It is a leader in e-commerce spending and in cloud computing through its Amazon Web Services business. It is also quickly growing its advertising business into a challenger to Google (GOOGL) and Meta (META).
As of 2025-01-12, the Fair Value of Amazon.com Inc (AMZN) is 118.56 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 218.94 USD, the upside of Amazon.com Inc is -45.8%.
For Amazon, the company still has many new avenues for future expansion in mind, including (but not limited to) media content, grocery stores, and health care. Growth is still very much the top priority for Amazon. As a result, investors should not expect a dividend payment any time soon.
Amazon (AMZN -0.22%) ended 2024 on a high note, up 44% in 52 weeks. But more importantly, it's coming into the year with all systems go to leverage its e-commerce platform to gain market share and harness the power of artificial intelligence (AI) to supercharge its cloud platform.
Google (GOOGL) PE Ratio (TTM) : 25.33 (As of Jan. 14, 2025)
Amazon.com has a current ratio of 1.09. It generally indicates good short-term financial strength. During the past 13 years, Amazon.com's highest Current Ratio was 1.20. The lowest was 0.92.
As of today (2025-01-13), Tesla's share price is $394.74. Tesla's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was $3.65. Therefore, Tesla's PE Ratio (TTM) for today is 108.15.
Those gains translate to a 25.8% compound annual growth rate for Amazon compared to an 8.2% CAGR for the S&P 500 in that time. As a result, $10,000 in AMZN stock purchased 20 years ago would now be worth $983,555.
Did you know that a $1,000 investment in Amazon's IPO in 1997 would be worth $1.87 million today? That's a staggering return of over 186,900% 🚀 ✨ But it wasn't all smooth sailing. Investors had to endure a 95% drop during the dot-com bust, waiting until 2009 to recover.
If Amazon grows its earnings per share (EPS) by an average of 25% annually over the next three years, it could achieve an EPS of around $9.25 by FY 2027 (up from an estimated $4.74 in FY 2024). Applying a 35x P/E ratio in line with Amazon's historical average suggests a fair stock value of over $300.
AMZN sits at a Zacks Rank #1 (Strong Buy), holds a Growth Style Score of B, and has a VGM Score of B. Earnings and sales are forecasted to increase 82.1% and 10.9% year-over-year, respectively.
Apple long term stock forecast is anticipated to be $315 in 2025, $370 in 2026, $425 in 2027, $465 in 2028, and $480 in 2029. In 2030, analysts anticipate Apple shares will be worth $510.
Tesla Stock Price Predictions for 2030
End-of-Year 2030: Most Bullish Projection: 1259 (CoinPriceForecast) Most Bearish Projection: 348.87 (Gov Capital)
Who currently owns Amazon? Amazon is a publicly traded company, which means it's owned by shareholders. Its largest individual shareholder is founder and former CEO Jeff Bezos, followed by institutional investors Vanguard Group, BlackRock, and State Street.
Min: 39.94 Med: 93.67 Max: 935.08
During the past 13 years, the highest PE Ratio (TTM) of Amazon.com was 935.08. The lowest was 39.94.
MacKenzie Scott (née Tuttle, formerly Bezos; born April 7, 1970) is an American novelist, philanthropist, co-founder of Amazon and ex-wife of Jeff Bezos. As of December 2024, she has a net worth of US$42.1 billion, according to Bloomberg Billionaires Index; owning a 4% stake in Amazon.