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Amazon.com PE Ratio

: 57.31 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-01-21), Amazon.com's share price is $2929.76. Amazon.com's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $51.12. Therefore, Amazon.com's PE Ratio for today is 57.31.

Good Sign:

Amazon.com Inc stock PE Ratio (=59.34) is close to 10-year low of 55.78


The historical rank and industry rank for Amazon.com's PE Ratio or its related term are showing as below:

NAS:AMZN' s PE Ratio Range Over the Past 10 Years
Min: 55.78   Med: 146.39   Max: 3732.43
Current: 58.49

55.78
3732.43

During the past 13 years, the highest PE Ratio of Amazon.com was 3732.43. The lowest was 55.78. And the median was 146.39.


NAS:AMZN's PE Ratio is ranked lower than
87% of the 738 Companies
in the Retail - Cyclical industry.

( Industry Median: 17.53 vs. NAS:AMZN: 58.49 )

Amazon.com's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $6.12. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $51.12.

As of today (2022-01-21), Amazon.com's share price is $2929.76. Amazon.com's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $51.12. Therefore, Amazon.com's PE Ratio without NRI for today is 57.31.

During the past 13 years, Amazon.com's highest PE Ratio without NRI was 3732.43. The lowest was 55.78. And the median was 146.39.

Amazon.com's EPS without NRI for the three months ended in Sep. 2021 was $6.12. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $51.12.

During the past 12 months, Amazon.com's average EPS without NRI Growth Rate was 49.70% per year. During the past 3 years, the average EPS without NRI Growth Rate was 89.50% per year. During the past 5 years, the average EPS without NRI Growth Rate was 95.00% per year.

During the past 13 years, Amazon.com's highest 3-Year average EPS without NRI Growth Rate was 152.60% per year. The lowest was -318.60% per year. And the median was 31.20% per year.

Amazon.com's EPS (Basic) for the three months ended in Sep. 2021 was $6.23. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2021 was $52.10.


Amazon.com PE Ratio Historical Data

The historical data trend for Amazon.com's PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Amazon.com Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 153.03 190.16 74.58 80.31 77.86

Amazon.com Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 92.20 77.86 58.88 59.96 64.26

Competitive Comparison

For the Internet Retail subindustry, Amazon.com's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Amazon.com PE Ratio Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Amazon.com's PE Ratio distribution charts can be found below:

* The bar in red indicates where Amazon.com's PE Ratio falls into.



Amazon.com PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Amazon.com's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=2929.76/51.120
=57.31

Amazon.com's Share Price of today is $2929.76.
Amazon.com's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $51.12.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Amazon.com  (NAS:AMZN) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Amazon.com PE Ratio Related Terms

Thank you for viewing the detailed overview of Amazon.com's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Amazon.com Business Description

Amazon.com logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 454110 SIC : 5961
Address
410 Terry Avenue North, Seattle, WA, USA, 98109-5210
Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $482 billion in estimated physical/digital online gross merchandise volume, or GMV, in 2020. Retail related revenue represented approximately 83% of total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (12%), and advertising services and cobranded credit cards (6%). International segments constituted 27% of Amazon's non-AWS sales in 20202, led by Germany, the United Kingdom, and Japan.
Executives
Wilke Jeffrey A officer: CEO Worldwide Consumer PO BOX 81226 SEATTLE WA 98108-1226
Nooyi Indra K director 700 ANDERSON HILL RD PURCHASE NY 10577
Jassy Andrew R officer: CEO Amazon Web Services PO BOX 81226 SEATTLE WA 98108-1226
Reynolds Shelley officer: Vice President PO BOX 81226 SEATTLE WA 98108
Zapolsky David officer: Senior Vice President PO BOX 81226 SEATTLE WA 98108
Olsavsky Brian T officer: Senior Vice President and CFO PO BOX 81226 SEATTLE WA 98108
Mcgrath Judith A director PO BOX 81226 SEATTLE WA 98108
Alexander Keith Brian director P.O. BOX 81226 SEATTLE WA 98108-1226
Bezos Jeffrey P director, 10 percent owner, officer: Chairman, CEO and President PO BOX 81226 PO BOX 81226 SEATTLE WA 98108-1226
Stonesifer Patricia Q director PO BOX 81226 SEATTLE WA 98108-1226
Rubinstein Jonathan director APPLE COMPUTER INC 1 INFINITE LOOP CUPERTINO CA 95014
Gorelick Jamie S director 12061 BLUEMONT WAY RESTON VA 20190
Weeks Wendell P director ONE RIVERFRONT PLZ CORNING NY 14831
Blackburn Jeffrey M officer: Senior Vice President PO BOX 81226 SEATTLE WA 98108-1226
Brewer Rosalind G director C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202

Amazon.com Headlines

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