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Amazon.com Inc (NAS:AMZN)
Median P/S Value
\$537.11 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) revenue per share times 10-Year median P/S ratio. Amazon.com Inc's revenue per share for the trailing twelve months (TTM) ended in Sep. 2016 was \$265.898. Amazon.com Inc's 10-Year median P/S ratio is 2.02. Therefore, the Median P/S Value for today is \$537.11.

As of today, Amazon.com Inc's share price is \$740.34. Amazon.com Inc's median P/S value is \$537.11. Therefore, Amazon.com Inc's Price to Median P/S Value Ratio for today is 1.38.

AMZN' s Price to Median P/S Value Range Over the Past 10 Years
Min: 0.36   Max: 15.48
Current: 1.38

0.36
15.48

During the past 13 years, the highest Price to Median P/S Value Ratio of Amazon.com Inc was 15.48. The lowest was 0.36. And the median was 1.11.

AMZN's Price to Median P/S Value is ranked lower than
80% of the 1084 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.02 vs. AMZN: 1.38 )

Definition

Amazon.com Inc's Median P/S Value for today is calculated as

 Median P/S Value = Total Annual Sales / Shares Outstanding * 10-Year Median P/S Ratio = Revenue per Share (TTM) * 10-Year Median P/S Ratio = 265.898 * 2.02 = 537.11

10-Year Median P/S Ratio is 2.02.
Amazon.com Inc's revenue per share for the trailing twelve months (TTM) ended in Sep. 2016 was 74.941 (Dec. 2015 ) + 60.557 (Mar. 2016 ) + 62.948 (Jun. 2016 ) + 67.452 (Sep. 2016 ) = \$265.898.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the companys value.

Amazon.com Inc's Price to Median P/S Value Ratio for today is calculated as

 Price to Median P/S Value = Share Price / Median P/S Value = 740.34 / 537.11 = 1.38

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Amazon.com Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 medpsvalue 50.93 70.81 89.79 112.42 151.72 210.94 271.04 326.38 387.97 455.62

Amazon.com Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 medpsvalue 356.65 370.89 387.97 401.45 415.09 432.47 455.62 479.26 508.02 537.11
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