AMZN PE Ratio & Valuation, Is AMZN Overvalued

Historical Valuation

Amazon.com Inc (AMZN) is now in the Fair zone, suggesting that its current forward PS ratio of 3.14 is considered Fairly compared with the five-year average of -21.72. The fair price of Amazon.com Inc (AMZN) is between 157.01 to 217.56 according to relative valuation method.

Relative Value

Fair Zone

157.01-217.56

Current Price：214.33

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Amazon.com Inc (AMZN) has a current Price-to-Book (P/B) ratio of 6.55. Compared to its 3-year average P/B ratio of 7.87, the current P/B ratio is approximately -16.79% higher. Relative to its 5-year average P/B ratio of 9.44, the current P/B ratio is about -30.64% higher. Amazon.com Inc (AMZN) has a Forward Free Cash Flow (FCF) yield of approximately 0.44%. Compared to its 3-year average FCF yield of 1.15%, the current FCF yield is approximately -62.17% lower. Relative to its 5-year average FCF yield of 0.29%, the current FCF yield is about 49.93% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for AMZN competitors is 2.29, providing a benchmark for relative valuation. Amazon.com Inc Corp (AMZN.O) exhibits a P/S ratio of 3.14, which is 36.78% above the industry average. Given its robust revenue growth of 13.63%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of AMZN increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of AMZN in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is AMZN currently overvalued or undervalued?

What is Amazon.com Inc (AMZN) fair value?

AMZN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Amazon.com Inc (AMZN) is between 157.01 to 217.56 according to relative valuation method.

How does AMZN's valuation metrics compare to the industry average?

The average P/S ratio for AMZN's competitors is 2.29, providing a benchmark for relative valuation. Amazon.com Inc Corp (AMZN) exhibits a P/S ratio of 3.14, which is 36.78% above the industry average. Given its robust revenue growth of 13.63%, this premium appears unsustainable.

What is the current P/B ratio for Amazon.com Inc (AMZN) as of Mar 11 2026?

As of Mar 11 2026, Amazon.com Inc (AMZN) has a P/B ratio of 6.55. This indicates that the market values AMZN at 6.55 times its book value.

What is the current FCF Yield for Amazon.com Inc (AMZN) as of Mar 11 2026?

As of Mar 11 2026, Amazon.com Inc (AMZN) has a FCF Yield of 0.44%. This means that for every dollar of Amazon.com Inc's market capitalization, the company generates 0.44 cents in free cash flow.

What is the current Forward P/E ratio for Amazon.com Inc (AMZN) as of Mar 11 2026?

As of Mar 11 2026, Amazon.com Inc (AMZN) has a Forward P/E ratio of 30.44. This means the market is willing to pay $30.44 for every dollar of Amazon.com Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Amazon.com Inc (AMZN) as of Mar 11 2026?

As of Mar 11 2026, Amazon.com Inc (AMZN) has a Forward P/S ratio of 3.14. This means the market is valuing AMZN at $3.14 for every dollar of expected revenue over the next 12 months.

AMZN Valuation