Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS).
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (54 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $98.31 Implied EV: $1.19T |
What growth rate is the market pricing in at $277?
The market implies +17.2% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +50.9%, reflecting heavy growth investment expected to generate future returns.
Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Price far exceeds estimated intrinsic value amid market euphoria — extreme risk of capital loss
