At this time, the firm appears to be undervalued. Amazon Inc shows a prevailing Real Value of USD250.51 per share. The current price of the firm is USD225.78. Our model approximates the value of Amazon Inc from analyzing the firm fundamentals such as profit margin of 0.10 %, and Return On Equity of 0.25 as well as examining its technical indicators and probability of bankruptcy.
Enterprise Value
2.4 T
Trailing PE
0.3671
Undervalued
Today 225.78
Please note that Amazon's price fluctuation is very steady at this time. Calculation of the real value of Amazon Inc is based on 3 months time horizon. Increasing Amazon's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Amazon stock is determined by what a typical buyer is willing to pay for full or partial control of Amazon Inc. Since Amazon is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Amazon Stock. However, Amazon's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical
Market 225.78
Real 250.51
Hype 225.78
Naive 224.28
The intrinsic value of Amazon's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Amazon's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Amazon Inc helps investors to forecast how Amazon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Amazon more accurately as focusing exclusively on Amazon's fundamentals will not take into account other important factors:
Amazon Inc is presently projected to have takeover price of 2.4 T with market capitalization of 1.61 T, debt of 64.41 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Amazon fundamentals before making investing decisions based on enterprise value of the company
About 65.0% of the company shares are owned by institutions such as pension funds. The company recorded earning per share (EPS) of 6.15. Amazon Inc had not issued any dividends in recent years. The entity had 20:1 split on the 6th of June 2022. Based on the analysis of Amazon's profitability, liquidity, and operating efficiency, Amazon Inc is not in a good financial situation at the moment. It has a very high risk of going through financial straits in August.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Amazon has an asset utilization ratio of 111.72 percent. This implies that the Company is making USD1.12 for each dollar of assets. An increasing asset utilization means that Amazon Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Covid
Amazon Ownership Allocation
The market capitalization of Amazon Inc is USD1.61 Trillion. Over half of Amazon's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Amazon. Please watch out for any change in the institutional holdings of Amazon Inc as this could mean something significant has changed or is about to change at the company. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the firm is less than the current market value, you may not be able generate positive returns on investment in the long run.
Amazon Profitability Analysis
The company reported the revenue of 469.82 B. Net Income was 30.43 B with profit before overhead, payroll, taxes, and interest of 319.68 B.
About Amazon Valuation
The stock valuation mechanism determines Amazon's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Amazon Inc based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Amazon. We calculate exposure to Amazon's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Amazon's related companies.
When running Amazon's price analysis, check to measure Amazon's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Amazon is operating at the current time. Most of Amazon's value examination focuses on studying past and present price action to predict the probability of Amazon's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Amazon's price. Additionally, you may evaluate how the addition of Amazon to your portfolios can decrease your overall portfolio volatility.