| Company name | Amazon.com, Inc. |
| Stock ticker | AMZN |
| Live stock price | [stckqut]AMZN[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
| Price growth | Good |
| R&D growth | Good |
| Income growth | Good |
| Assets growth | Good |
| Return on Assets growth | Good |
| Income / Rev growth | Good |
| TWCA Plus | Good |
| Standard TWCA | Good |
| Weighted ann. stock price increase | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $3825.25 |
| Target stock price (averages with growth) | $1825.02 |
| Target stock price (averages with no growth) | $3261.88 |
| Target stock price (manual assumptions) | $2797.46 |
The following company description is from Reuters: https://finance.yahoo.com/quote/amzn/profile?p=amzn
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It sells merchandise and content purchased for resale from third-party sellers through physical and online stores. The company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, and Echo and other devices; provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store; and develops and produces media content. In addition, it offers programs that enable sellers to sell their products on its Websites, as well as its stores; and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content. Further, the company provides compute, storage, database, and other AWS services, as well as fulfillment, advertising, publishing, and digital content subscriptions. Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. The company also has utility-scale solar projects in China, Australia, and the United States. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Amazon.com, Inc. as long as the indicators that I describe in my book The Confident Investor are favorable.
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.
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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: $2473.52
- Growth: 0.2
- Current EPS (TTM): $18.875
- P/E: 95.9254795421481
- Future EPS Calc: $46.96
- Future Stock Price Calc: $4505.33
- Target stock price: $2797.45
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I hope that this makes you a Confident Investor.