An Analysis of Amazon’s Valuation Metrics



An analysis of Amazon’s price and book values

Amazon (AMZN) is trading at a price-to-book value of 21.4x. The stock’s price-to-sales multiple is 3.3x, and its price-to-estimated sales multiple for the current year is 2.8x.

The company has an EV (enterprise value) of ~$450.1 billion, which implies that it has a current EV-to-trailing-12-month sales multiple of 3.2x. The company’s EV-to-projected sales multiple for this year is 2.7x, while its EV-to-estimated sales multiple for next year is 2.24x.

In comparison, Alphabet (GOOGL), Twitter (TWTR), Square (SQ), and Facebook (FB), Amazon’s peers in the Internet space, have EVs of ~$570.7 billion, ~$11.2 billion, ~$7.3 billion, and ~$397.3 billion, respectively.

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Inside Amazon’s stock price and related ratios

Amazon shares are currently trading at a price-to-sales multiple of 3.25x and a price-to-EBITDA multiple of 36.12x. Also, its shares are changing hands at a price-to-book value of 21.41x, and its estimated book-per-share is ~$52.8. The stock’s price-to-estimated sales multiple is 2.79x.

Perception of credit experts on Amazon’s credit position

Amazon’s books show it has total capital of ~$29.4 billion and total debt of ~$7.7 billion, putting its total debt-to-total capital ratio at 50%.

Peers Alphabet, Twitter, Square, and Facebook have total capitals of ~$148.9 billion, ~$6.4 billion, ~$0.9 billion, and ~$62.2 billion, respectively.

If we compare debt with assets and equity, we’ll find that Amazon has debt-to-assets of 0.09 and debt-to-equity of 35.48. In other debt measures, the company has debt-to-EBITDA of 0.60 and debt-to-EV of 2%.


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