Is Amazon.com, Inc. (AMZN) Undervalued?
Based on the current stock price of $232.52 and a P/E ratio of 32.89,Amazon.com, Inc. has a PEG ratio of 1.19.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.19, AMZN appears to be fairly valued relative to its growth rate of 27.66%.
Based on a PEG ratio of 1.19 (adjusted for dividends).
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How we analyzed AMZN
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 32.89and dividing it by the annual growth rate of 27.66%.
PEG = 32.89 (P/E) ÷ 27.66 (Growth) = 1.19
Frequently Asked Questions about AMZN
What is the current PEG Ratio for Amazon.com, Inc. (AMZN)?+
The current PEG Ratio for Amazon.com, Inc. is 1.19. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is AMZN stock undervalued right now?+
Based on the PEG ratio of 1.19, Amazon.com, Inc. appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for AMZN?+
The PEGY ratio for Amazon.com, Inc. is 1.19. This metric accounts for dividend yield (0.00%), providing a more complete valuation picture.