Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
Amazon.com, Inc.
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
=== Relative Valuation === A comparable trade analysis is conducted to establish a relative valuation for Amazon, supplementing the aforementioned absolute DCF valuation. The analysis takes into account key competitors, such as Alibaba and Ebay <ref>https://www.shopify.com/blog/amazon-competitors</ref>. The EV/EBITDA ratio, a commonly used valuation metric, takes into account both debt and liabilities relative to the actual earnings. On the other hand, the EV/Revenue ratio serves as an effective tool to determine whether a stock is undervalued or overvalued compared to its industry peers by accounting for the enterprise value and revenue generated by the firm. The table provides a brief analysis of the ratios and market cap of the several companies in the analysis including their minimum/maximum, median, quartile and mean values. Β In order to consider growth in relative valuation, PEG and growth adjusted EV/Revenue valuation multiples are used. PEG is the ratio of P/E to the annual growth in EPS. Growth adjusted EV/Revenue multiple is the ratio of EV/Revenue to the annual growth in revenue. {| class="wikitable" !Name !P/E <ref>https://finbox.com/NASDAQGS:AMZN/explorer/pe_ltm/</ref> !EPS 2022 <ref>https://www.macrotrends.net/stocks/charts/AMZN/amazon/eps-earnings-per-share-diluted</ref> !EPS 2023 <ref name=":7">https://finance.yahoo.com/quote/AMZN/analysis/</ref> !EPS growth !PEG |- |Amazon.com Inc |321.8 | -0.27 |1.57 | -681.5% | -47.22 |- |MercadoLibre Inc |92.3 |9.53 |16.69 |75.1% |122.85 |- |Etsy Inc | -16.1 | -5.48 |2.33 | -142.5% |11.30 |- |Chewy Inc |306.7 |0.12 | -0.01 | -108.3% | -283.11 |- |eBay Inc |39.2 | -2.27 |3.35 | -247.6% | -15.83 |- |Alibaba Group |23.9 |2.34 |8.52 |264.1% |9.05 |- |Vipshop Holdings Ltd |9.8 |1.43 |1.88 |31.5% |31.14 |- |'''Median''' |'''31.6''' |'''0.8''' |'''2.8''' |'''-38.4%''' |'''10.2''' |- |'''Mean''' |'''111.1''' |'''0.8''' |'''4.9''' |'''-115.6%''' |'''-24.5''' |} {| class="wikitable" !Name !Revenue 2022 <ref>https://www.macrotrends.net/stocks/charts/AMZN/amazon/revenue</ref> !Revenue 2023 <ref name=":7" /> !Revenue growth !EV/Revenue !Growth Adjusted EV/Revenue |- |Amazon.com Inc |514.0 |560.8 |9.1% |2.9 |31.8 |- |MercadoLibre Inc |10.5 |13.5 |28.5% |5.2 |18.2 |- |Etsy Inc |2.6 |2.8 |7.6% |4.8 |63.5 |- |Chewy Inc |10.1 |11.4 |12.7% |2.0 |15.8 |- |eBay Inc |9.8 |10.1 |2.6% |2.5 |96.0 |- |Alibaba Group |126.491 |132.7 |4.9% |2.5 |50.8 |- |Vipshop Holdings Ltd |14.956 |15.8 |5.6% |2.5 |44.3 |- |'''Median''' |'''10.3''' |'''12.5''' |'''6.6%''' |'''2.5''' |'''47.6''' |- |'''Mean''' |'''98.3''' |'''106.7''' |'''10.1%''' |'''3.2''' |'''45.8''' |} Amazon had a negative annual EPS in 2022 which results in a negative EPS growth and PEG. Therefore, this multiple is not used to obtain a valuation. It has both a high PE and EV/Revenue multiple compared to the industry median, which usually implies that the stock is overvalued. On the other hand, Amazon has a noticeably lower growth adjusted EV/Revenue multiple (31.8) compared to the industry median (47.6). This results in an implied share price of $211.09, which is significantly higher than the current share price.
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)