AMZN Fair Value Estimate
$303.5844.7% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Amazon.com Inc
Exchange: NASDAQSector: Consumer CyclicalIndustry: Internet Retail
At Amazon Games, our ambition is to create bold new experiences that foster community in and around our games. Our team of game industry veterans is building within the sandbox of Prime Gaming, Twitch, Amazon retail, Amazon Web Services (AWS), and more to push boundaries and deliver captivating experiences to our players. Amazon Games is developing AAA multiplayer games based on original IPs, including New World, with our studios and teams in Orange County, San Diego, Montreal, and Seattle. Amazon Games also publishes best-in-class third-party games, leading with Lost Ark from Smilegate RPG. About Bandai Namco Online Inc. “Online games from Japan to the world” Bandai Namco Online Inc. is a rapidly growing company within the Bandai Namco Group that specializes in the online game business, with a full range of functions from development and operation to publishing. Our company continues to develop a variety of contents and services for all devices, including the team shooter GUNDAM EVOLUTION, the online action RPG BLUE PROTOCOL, and our original IP IDOLiSH7. Upholding our slogan, “Online games from Japan to the world,” we are committed to challenging ourselves to create online games with a unique Japanese twist. While focusing on the production of online games, we will continue to collaborate with other companies both within and outside of the Bandai Namco Group in order to develop a wide variety of entertainment that goes beyond games.
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Capital expenditures increased by 65% from FY24 to FY25.
Current Price
$209.77
-0.38%GoodMoat Value
$303.58
44.7% undervaluedProfile
Valuation (TTM)
Market Cap$2.24T
P/E28.87
EV$2.28T
P/B5.46
Shares Out10.69B
P/Sales3.13
Revenue$716.92B
EV/EBITDA13.79
Amazon.com Inc (AMZN) Valuation
GoodMoat Analysis
Amazon's current price of $212.08 is significantly below the GoodMoat Target of $303.58, implying a margin of safety of approximately 30%. This valuation appears favourable relative to its historical P/E and strong business quality, though the low free cash flow yield warrants attention.
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Based on the GoodMoat Investment Framework, Amazon's valuation presents a compelling case. The current price of $212.08 is approximately 30% below the GoodMoat Target fair value estimate of $303.58. According to Section 4's Margin of Safety bands, a discount of 20–40% is classified as 'Favourable', placing Amazon squarely in this attractive range. This suggests the market may be undervaluing the company's future cash flows relative to the framework's intrinsic value calculation. The forward P/E of 29.1x, while elevated in absolute terms, must be contextualized against the company's 13.6% revenue growth and its transformation into a consistently profitable enterprise with an 11.2% operating margin. This multiple is more justifiable for a company of Amazon's scale and quality than it would be for a slower grower. However, a point of caution from the valuation data is the very low Free Cash Flow Yield of 0.5%, which indicates the stock is not priced as a deep value cash generator today. Investors are clearly paying for future growth and profitability expansion. When integrating this valuation with the business's likely high Moat and Quality scores (which would pass Step 1 of the Decision Framework), the current price appears favourable for a value investor focused on long-term intrinsic value, provided they accept that near-term cash flow generation is being reinvested for growth. Analysis based on data as of 2024-05-15.
AMZN Valuation Metrics
FCF$11.19B
FCF Growth Rate-13.01%
EPS Growth (CAGR)-13.01%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →AMZN Valuation & Fair Value Analysis
Amazon.com Inc (AMZN) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Amazon.com Inc is $303.58. The current stock price is $209.77, suggesting the stock is 44.7% undervalued.
The price-to-earnings (P/E) ratio is 28.87. Price-to-book ratio is 5.46. Price-to-sales ratio is 3.13. Enterprise value to EBITDA is 13.79. PEG ratio is 6.86.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Amazon.com Inc's intrinsic value.