|Company name||Amazon.com, Inc.|
|Live stock price||[stckqut]AMZN[/stckqut]|
|P/E compared to competitors||Fair|
|Confident Investor Rating||Fair|
|Target stock price (TWCA growth scenario)||$1531.86|
|Target stock price (averages with growth)||$1690.92|
|Target stock price (averages with no growth)||$765.17|
|Target stock price (manual assumptions)||$1529.6|
The following company description is from Google Finance: http://www.google.com/finance?q=amzn
Amazon.com, Inc. offers a range of products and services through its Websites. The Company operates through three segments: North America, International and Amazon Web Services (AWS). The North America segment consists of retail sales of consumer products (including from sellers) and subscriptions through North America-focused Websites, such as www.amazon.com, www.amazon.ca and www.amazon.com.mx. The International segment primarily consists of retail sales of consumer products (including from sellers) and subscriptions through internationally-focused Websites, such as www.amazon.com.au, www.amazon.nl, www.amazon.es and www.amazon.co.uk. The AWS segment consists of sales of compute, storage, database, and other service offerings for start-ups, enterprises, government agencies and academic institutions. The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It manufactures and sells electronic devices.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Amazon.com, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Amazon.com, Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $992.27
- Growth: 0.2
- Current EPS (TTM): $3.96
- P/E: 250
- Future EPS Calc: $9.85
- Future Stock Price Calc: $2463.43
- Target stock price: $1529.6
I hope that this makes you a Confident Investor.