Amazon Com PE ratio, current and historical analysis (2024)

FAQs

What is the current PE ratio of Amazon? ›

P/E ratio as of April 2024 (TTM): 95.3

According to Amazon's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 95.2704. At the end of 2022 the company had a P/E ratio of -313.

Why is Amazon PE Ratio so high? Amazon's P/E ratio is higher than most companies in the retail industry because investors are optimistic about its future growth potential. As mentioned, a high price multiple can indicate the market expects higher growth from a company.

To get the historical PE ratio, you would use the function in the following format: =WISE("ticker", "PE", "period"). Replace "ticker" with the stock symbol of the company you're interested in and "period" with the specific year or time period you want the PE ratio for.

During the last fifteen years, with the exception of the “Great Recession,” the P/E ratio has been generally centered around the average of 19.4x. Prior to 2003, there were periods where this was not the case. From 1973 to 1985, the P/E ratio tracked close to 10x.

Amazon.com's operated at median current ratio of 1.1x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Amazon.com's current ratio peaked in December 2021 at 1.1x. Amazon.com's current ratio hit its 5-year low in December 2022 of 0.9x.

Amazon has a high working capital turnover ratio, but a low current ratio. This is because Amazon is a high-growth company that is using its working capital to finance its growth. The company has a large amount of inventory, which is why its current ratio is low.

Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio.

With its 4-star rating, we believe Amazon's stock is undervalued compared with our long-term fair value estimate. Our fair value estimate for Amazon stock is $155 per share, which implies a 2023 enterprise value to sales multiple of 3 times and a 3% free cash flow yield.

With its 3-star rating, we believe Amazon's stock is fairly valued compared with our long-term fair value estimate. Over the long term, we expect e-commerce to continue to take share from brick-and-mortar retailers.

P/E ratio as of April 2024 (TTM): 30.5

According to Alphabet (Google)'s latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 30.461. At the end of 2022 the company had a P/E ratio of 19.3.

How do you analyze PE ratio? ›

Components of P/E ratio

The P/E for a stock is computed by dividing the price of a stock (the "P") by the company's annual earnings per share (the "E"). If a stock is trading at $20 per share and its earnings per share are $1, then the stock has a P/E of 20 ($20/$1).

As at Apr 22, 2024, the AAPL stock has a PE ratio of 25.67. This is based on the current EPS of $6.46 and the stock price of $165.84 per share. A decrease of 13% has been seen in the P/E ratio compared to the average of 29.5 of the last 4 quarters.

As of today (2024-04-23), Tesla's share price is $142.13. Tesla's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $4.31. Therefore, Tesla's PE Ratio for today is 32.98.

Basic Info

S&P 500 P/E Ratio is at a current level of 24.79, up from 23.27 last quarter and up from 22.23 one year ago.

Investors and analysts consider stocks which have a P/E ratio of 50 or above to be an overvalued share, especially in comparison to a stock which has a ratio at par with or below 10.

Average PE of Nifty in the last 20 years was around 20. * So PEs below 20 may provide good investment opportunities; lower the PE below 20, more attractive the investment potential.

Walmart PE Ratio: 31.19 for April 23, 2024.

P/E ratio as of April 2024 (TTM): 18.4

According to PayPal's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 18.4273. At the end of 2022 the company had a P/E ratio of 33.8.