Assess Amazon.com Beyond Technicals – Dig Into Its Fundamentals

By Chris Stiles • Thursday, August 14 15:22 • Permanent Link

Amazon.com logged a 3.1% change during today's afternoon session, and is now trading at a price of $231.56 per share. The S&P 500 index moved 0.0%. AMZN's trading volume is 47,781,730 compared to the stock's average volume of 42,710,837.

Amazon.com trades -11.65% away from its average analyst target price of $262.11 per share. The 64 analysts following the stock have set target prices ranging from $220.0 to $306.0, and on average have given Amazon.com a rating of buy.

If you are considering an investment in AMZN, you'll want to know the following:

Amazon.com's current price is 302.0% above its Graham number of $57.61, which implies that at its current valuation it does not offer a margin of safety
Amazon.com has moved 26.4% over the last year, and the S&P 500 logged a change of 16.7%
Based on its trailing earnings per share of 6.56, Amazon.com has a trailing 12 month Price to Earnings (P/E) ratio of 35.3 while the S&P 500 average is 29.3
AMZN has a forward P/E ratio of 37.7 based on its forward 12 month price to earnings (EPS) of $6.15 per share
Its Price to Book (P/B) ratio is 7.4 compared to its sector average of 2.93
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.
Based in Seattle, the company has 1,546,000 full time employees and a market cap of $2.47 Trillion.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.