Research on Enterprise Valuation Method Based on P/E Ratio: Taking Amazon as an Example

Autor: Yue Yuan
Rok vydání: 2023
Zdroj: BCP Business & Management. 38:1117-1124
ISSN: 2692-6156
DOI: 10.54691/bcpbm.v38i.3834
Popis: With the rapid growth of the e-commerce market, Amazon.com, INC. (Amazon) is one of remarkable firms. The general financial condition is worth analyzing to observe how Amazon makes money, and how it operates. Yahoo Finance and Macrotrends, which are platforms to search for financial and stock information of published companies, are main data resource websites in this article. Also, the financial report of Amazon is a channel to get detailed information and data. This paper mainly uses Price-to-Earnings Ratio (P/E ratio), which gives a brief view to show the anticipation of the company itself and the market based on analyzing stock prices. By comparing Amazon and its comparable firms' data from 2019 to 2020, the stock price of Amazon is overvalued. The author forecasts that this trend will be continued, but the company faces both opportunities and challenges. This article provides investors and those interested in e-commerce or Amazon with a reference for present and future value of Amazon.
Databáze: OpenAIRE