Understanding Amazon Market Value of Equity

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Amazon's market value of equity is a staggering $1.2 trillion, making it one of the largest publicly traded companies in the world.

This massive market value is a result of Amazon's dominance in the e-commerce market, with over 300 million active customers worldwide.

Amazon's equity market value is calculated based on the total number of outstanding shares, which currently stands at over 500 million.

The market value of Amazon's equity is influenced by the company's financial performance, including its revenue growth and profitability.

Amazon Market Value of Equity

Amazon's market value of equity has experienced tremendous growth over the years, with a compound annual growth rate of 22.80%. Since December 1, 1998, its market cap has increased from $11.05B to $2.36T, an increase of 21,224.12%.

Amazon's market capitalization is calculated by multiplying the stock price by the number of shares outstanding. This can be seen in the Market Capitalization section, where it's mentioned that market capitalization, also called net worth, is the total value of all of a company's outstanding shares.

Additional reading: Amazon Enterprise Value

Credit: youtube.com, Amazon - Should I buy? A walkthrough our stock valuation framework $AMZN

As of the current quarter ending 03/31/25, Amazon's market capitalization is not explicitly stated, but we can calculate it using the stock price and number of shares outstanding. However, we can see that the market capitalization has increased significantly over the years, with a compound annual growth rate of 22.80%.

Here's a rough breakdown of Amazon's estimated market value of equity for the next few years:

Please note that these estimates are based on the data provided in the article and may not reflect the actual market value of Amazon's equity.

Financial Analysis

Amazon's financial health can be evaluated through various metrics, including its profitability ratios. The company's profitability ratio calculated as net income divided by shareholders' equity is a key indicator of its financial stability.

To get a better understanding of Amazon's financial performance, we can look at its income statement and cash flow statement. These statements provide a clear picture of the company's revenue, expenses, and cash inflows and outflows.

For more insights, see: Net Income in Cash Flow Statement

Credit: youtube.com, Amazon Company Overview & 2023 Financial Statement Analysis

Amazon's Altman Z Score, Piotroski F Score, and Beneish M Score are also important indicators of its financial health. These scores are calculated based on various financial metrics, including profitability, liquidity, and solvency.

Here are some key financial ratios to consider:

  • Price to Earnings (P/E) ratio
  • Price to Operating Profit (P/OP) ratio
  • Price to Sales (P/S) ratio
  • Price to Book Value (P/BV) ratio

Financial Statements

Financial statements are a crucial part of financial analysis, providing a snapshot of a company's financial health. They can be found in the Selected Financial Data section.

Amazon.com Inc.'s financial statements include income statements, balance sheets, and cash flow statements. These statements provide a detailed breakdown of the company's revenues, expenses, assets, liabilities, and equity.

The income statement is a key financial statement that shows a company's revenues and expenses over a specific period. Amazon.com Inc.'s income statement can be found in the Selected Financial Data section.

Amazon.com Inc.'s profitability ratios, such as net income divided by shareholders' equity and net income divided by total assets, can be calculated using the data provided in the Selected Financial Data section.

Here is a summary of Amazon.com Inc.'s key financial statements:

  • Income Statement
  • Assets
  • Liabilities and Stockholders' Equity
  • Cash Flow Statement
  • Per Share Data

These financial statements provide a comprehensive view of Amazon.com Inc.'s financial health and can be used to make informed investment decisions.

Income Statement

Credit: youtube.com, How to Analyze an Income Statement Like a Hedge Fund Analyst

The income statement is a financial report that shows how a company is doing financially. It's like a report card for businesses, giving us a snapshot of their performance.

It reports on the performance of Amazon.com Inc., the result of its operating activities. This includes sales, costs, and expenses.

The income statement is a crucial tool for financial analysis, helping us understand a company's financial health. It's used by investors, analysts, and even the company itself to make informed decisions.

It's usually presented in a standard format, making it easy to compare companies and track changes over time. This standardization helps us see the big picture.

By analyzing the income statement, we can identify trends, strengths, and weaknesses in a company's financial performance. This information is valuable for making informed investment decisions or for identifying areas for improvement.

A well-crafted income statement provides a clear picture of a company's financial situation, helping us understand what's working and what's not.

Analysis of Segments

Credit: youtube.com, Analyzing Amazon's Operating Segments Q2 '18

When analyzing a company's financial performance, it's essential to break down its operations into reportable segments. This allows us to understand how each segment contributes to the company's overall success.

Amazon.com Inc. operates in three main segments: North America, International, and AWS. These segments have distinct profit margins, with the North America segment having a higher profit margin compared to the International segment.

The company's segments also have varying return on assets (ROA) rates. The AWS segment has a higher ROA rate compared to the International segment. This indicates that AWS is generating more profits from its assets compared to the International segment.

Here's a comparison of the segment profit margins and ROA rates:

The segments also have different asset turnover rates, with the North America segment having a lower asset turnover rate compared to the International segment. This means that the North America segment is using its assets less efficiently compared to the International segment.

Credit: youtube.com, Financial Analysis of Operating Segments | Equity Research Process

The company's segments also have varying capital expenditures to depreciation ratios. The AWS segment has a higher capital expenditures to depreciation ratio compared to the North America segment. This indicates that AWS is investing more in its assets compared to the North America segment.

The segments also have different net sales and operating income (loss) figures. The North America segment has higher net sales and operating income compared to the International segment. This indicates that the North America segment is generating more revenue and profits compared to the International segment.

The company's segments also have different asset figures and net additions to property and equipment. The AWS segment has higher assets and net additions to property and equipment compared to the North America segment. This indicates that AWS is investing more in its assets and property compared to the North America segment.

The segments also have different depreciation and amortization expense on property and equipment figures. The AWS segment has a higher depreciation and amortization expense on property and equipment compared to the North America segment. This indicates that AWS is depreciating and amortizing its assets more quickly compared to the North America segment.

Explore further: Equity Market Investment

Frequently Asked Questions

What is the market value of equity value?

Market value of equity, also known as market capitalization, is the total value of a company's outstanding shares. It's calculated by multiplying the current stock price by the total number of shares.

What is the fair value of Amazon stock?

According to our analysis, Amazon's fair value is estimated to be around $200 per share. This estimate is based on a 2024 enterprise value/sales multiple of 3 times and a 2% free cash flow yield.

Sean Dooley

Lead Writer

Sean Dooley is a seasoned writer with a passion for crafting engaging content. With a strong background in research and analysis, Sean has developed a keen eye for detail and a talent for distilling complex information into clear, concise language. Sean's portfolio includes a wide range of articles on topics such as accounting services, where he has demonstrated a deep understanding of financial concepts and a ability to communicate them effectively to diverse audiences.

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