Amazon Enterprise Value: A Comprehensive Analysis

Amazon's enterprise value has experienced significant growth over the years, reaching $1.2 trillion in 2022. This massive valuation is a testament to the company's dominance in the e-commerce space.

Amazon's revenue has consistently increased, with a compound annual growth rate (CAGR) of 22% from 2015 to 2020. This growth has been fueled by the company's expansion into new markets and services.

Amazon's market capitalization is a key driver of its enterprise value, accounting for approximately 70% of its total value. This highlights the importance of the stock market in determining Amazon's overall valuation.

The company's focus on innovation and customer satisfaction has contributed to its remarkable growth and valuation.

Additional reading: Enterprise Value for a Private Company

Amazon's Enterprise Value is a significant metric that helps investors and analysts understand the company's worth.

Amazon's Enterprise Value is greater than JD.com, Inc. (354.40B), PDD Holdings Inc. (958.27B), Sea Limited (61.57B), MercadoLibre, Inc. (93.65B), Alibaba Group Holding Limited (1.50T), Vipshop Holdings Limited (33.18B), Global-e Online Ltd. (8.58B), and Etsy, Inc. (7.60B).

Amazon's Enterprise Value is less than Microsoft Corporation (3.21T), Apple Inc. (3.74T), and Alphabet Inc. (2.40T).

Here's a comparison of Amazon's Enterprise Value with its peers:

Amazon's enterprise value (EV) is a significant metric for investors and analysts. It's calculated by adding the company's debt and cash to its market capitalization. In 2024, Amazon's EV was $2,390,529 million.

The EV/FCFF (Enterprise Value to Free Cash Flow to the Firm) ratio is a useful tool for evaluating a company's valuation. It compares the company's EV to its free cash flow. In 2024, Amazon's EV/FCFF ratio was 60.66, indicating that the company's valuation is relatively high compared to its free cash flow.

To put Amazon's EV/FCFF ratio into perspective, let's compare it to its competitors. In 2024, Home Depot Inc.'s EV/FCFF ratio was 23.59, Lowe's Cos. Inc.'s was 24.26, and TJX Cos. Inc.'s was 31.16. These ratios suggest that Amazon's valuation is relatively high compared to its competitors.

Here's a table showing Amazon's EV/FCFF ratio compared to its competitors and industry benchmarks:

Amazon's EV/FCFF ratio has been relatively stable over the years, with a slight increase in 2024. In 2023, the ratio was 45.92, and in 2022, it was not available due to negative free cash flow.

Here's an interesting read: Enterprise Value Ratio

Amazon's Enterprise Value has shown significant fluctuations over the years, with the maximum annual increase being 122.08% in 2015.

The company's Enterprise Value has also experienced some significant dips, with the minimum annual value being $141.34 billion in 2014.

Let's take a closer look at the Enterprise Value of Amazon over the past few years. In 2023, the Enterprise Value was $1.63 trillion, representing a 72.78% increase from the previous year.

In 2022, the Enterprise Value dropped to $942.11 billion, a decline of 46.69% from 2021.

Here's a comparison of Amazon's Enterprise Value over the past few years:

The Enterprise Value of Amazon is currently greater than its 3-year, 5-year, and 10-year historical averages.

Amazon's enterprise value is a topic of interest, especially when comparing it to other companies in the same sector.

The average P/E ratio for Consumer Cyclicals is a staggering 1,028.38x. This is significantly higher than the weighted average P/E ratio of 201.90x, which is calculated by taking into account the market capitalization of each company.

Related reading: Enterprise Value-to-sales Ratio

Amazon's P/E ratio is 43.63x, which is lower than the average and weighted average. JD.COM, INC. has a P/E ratio of 10.33x, while COUPANG, INC. has an unusually high P/E ratio of 9833.33x.

The EV/Sales ratio for Consumer Cyclicals is 2.57x on average. However, this number varies greatly among companies, with AMAZON.COM, INC. having a ratio of 3.6x and JD.COM, INC. having a ratio of 0.26x.

Amazon's EV/EBITDA ratio is 16.2x, which is lower than the average and weighted average. COUPANG, INC. has an EV/EBITDA ratio of 48.7x, while WAYFAIR INC. has a surprisingly low ratio of -12.46x.

Here's a comparison of some key metrics for Consumer Cyclicals: