Amazon Price To Earning vs. Price To Book
| AMZN Stock | USD 207.89 2.15 1.05% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.49 | 0.4698 |
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For Amazon profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Amazon to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Amazon Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Amazon's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Amazon Inc over time as well as its relative position and ranking within its peers.
Amazon |
Amazon's Revenue Breakdown by Earning Segment
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Is Broadline Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amazon. If investors know Amazon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amazon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.521 | Earnings Share 4.67 | Revenue Per Share 59.486 | Quarterly Revenue Growth 0.11 | Return On Assets 0.0707 |
The market value of Amazon Inc is measured differently than its book value, which is the value of Amazon that is recorded on the company's balance sheet. Investors also form their own opinion of Amazon's value that differs from its market value or its book value, called intrinsic value, which is Amazon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amazon's market value can be influenced by many factors that don't directly affect Amazon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amazon's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amazon is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amazon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Amazon Inc Price To Book vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Amazon's current stock value. Our valuation model uses many indicators to compare Amazon value to that of its competitors to determine the firm's financial worth. Amazon Inc is rated fifth in price to earning category among its peers. It is rated fourth in price to book category among its peers fabricating about 0.10 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Amazon Inc is roughly 9.97 . As of the 29th of November 2024, Price To Book Ratio is likely to drop to 7.37. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Amazon's earnings, one of the primary drivers of an investment's value.Amazon's Earnings Breakdown by Geography
Amazon Price To Book vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Amazon |
| = | 83.26 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Amazon |
| = | 8.35 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Amazon Price To Book Comparison
Amazon is currently under evaluation in price to book category among its peers.
Amazon Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Amazon, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Amazon will eventually generate negative long term returns. The profitability progress is the general direction of Amazon's change in net profit over the period of time. It can combine multiple indicators of Amazon, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3 B | -2.9 B | |
| Operating Income | 36.9 B | 38.7 B | |
| Income Before Tax | 37.6 B | 39.4 B | |
| Total Other Income Expense Net | -3 B | -2.9 B | |
| Net Income | 30.4 B | 31.9 B | |
| Income Tax Expense | 7.1 B | 7.5 B | |
| Net Loss | -3.1 B | -3 B | |
| Net Income From Continuing Ops | 20.1 B | 21.1 B | |
| Non Operating Income Net Other | -15.1 B | -14.4 B | |
| Interest Income | 2.5 B | 2.6 B | |
| Net Interest Income | -670 M | -703.5 M | |
| Change To Netincome | 32.7 B | 34.3 B | |
| Net Income Per Share | 2.95 | 3.10 | |
| Income Quality | 2.79 | 2.93 | |
| Net Income Per E B T | 0.81 | 0.94 |
Amazon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Amazon. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Amazon position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Amazon's important profitability drivers and their relationship over time.
Use Amazon in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Amazon position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amazon will appreciate offsetting losses from the drop in the long position's value.Amazon Pair Trading
Amazon Inc Pair Trading Analysis
The ability to find closely correlated positions to Amazon could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amazon when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Amazon - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Amazon Inc to buy it.
The correlation of Amazon is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Amazon moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Amazon Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Amazon can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Amazon position
In addition to having Amazon in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Technology
Companies that are involved in development or distribution of technologically based goods and services such as software, IT or electronics. The Technology theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Technology Theme or any other thematic opportunities.
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To fully project Amazon's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Amazon Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Amazon's income statement, its balance sheet, and the statement of cash flows.