Amazon.com, Inc.
[AMZN]
NASDAQ
MVPro™ Score: 71/100
Next Earnings: 23 Apr 2026
[AMZN]
NASDAQ
MVPro™ Score: 71/100
Next Earnings: 23 Apr 2026
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| Capitalization (mln USD) | 2,259,734 |
| Revenue (mln USD) | 213,386 |
| EBITDA (mln USD) | 46,755 |
| Net Income (mln USD) | 21,192 |
| Net Margin | 9.93% |
| EPS Ratio (TTM, USD) | 7.24 |
| P/E Ratio (TTM) | 29.09 |
| P/S Ratio (TTM) | 3.19 |
| D/E Ratio | 0.99 |
| EV/EBITDA (TTM) | 15.92 |
| CAPEX (Q/Q) | 12.61% |
| Dividend Yield | 0.00% |
Revenue, EBITDA & Net Income
Company Overview
Amazon, founded in 1994 by Jeff Bezos, began as an online bookstore before evolving into a global leader in e-commerce, cloud computing, and digital streaming. The company operates a vast marketplace that offers millions of products across various categories, including electronics, fashion, and home essentials. Additionally, Amazon Web Services (AWS) provides cloud computing solutions to businesses worldwide, making it one of the most profitable divisions of the company.
Headquartered in Seattle, Washington, Amazon is currently led by CEO Andy Jassy, who took over from Jeff Bezos in 2021. The company employs over 1.5 million people globally, with operations in North America, Europe, Asia, and other key international markets. Its mission is to be the “Earth’s most customer-centric company,” focusing on convenience, selection, and competitive pricing.
Amazon places a growing emphasis on Environmental, Social, and Governance (ESG) policies, committing to net-zero carbon emissions by 2040 and investing in renewable energy. The company has also pledged to improve working conditions and sustainability practices across its supply chain. With its continuous expansion and innovation, Amazon remains at the forefront of the digital economy.
🟡 P/E (Price to Earnings, TTM)
Price-to-earnings (P/E) ratio for the most recent quarter is 29.5, compared to 34.5 in the previous quarter, with a longer-term trend value of 27.7. This decline in the P/E ratio may indicate a shift in market sentiment, where investors are placing a lower premium on future earnings growth. A falling P/E ratio could be driven by slowing revenue growth, increased risk perception, or improved earnings performance that is outpacing stock price growth.
P/E Ratio
Source: MarketVectors.Pro, Amazon Financial Reports (TTM)
P/E Ratio
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🟢 EPS (Earnings Per Share, TTM)
Amazon's earnings per share (EPS) for the most recent quarter is 7.24 USD (+1.14%), compared to 7.16 USD in the previous quarter, with a longer-term trend value of 9.21 USD. This quarterly increase in EPS suggests improved profitability and operational efficiency.
EPS
Source: MarketVectors.Pro, Amazon Financial Reports (TTM, USD)
EPS
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🔴 P/B (Price to Book)
Price-to-book (P/B) ratio for the most recent quarter stands at 5.57 (-21.9%), compared to 7.13 in the previous quarter, with a long-term trend value of 5.87. This decline in the P/B ratio may indicate a more conservative market stance on the company’s asset valuation, potentially influenced by shifting investor sentiment, changes in financial fundamentals, or broader economic conditions.
P/B Ratio
Source: MarketVectors.Pro, Amazon Financial Reports
P/B Ratio
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🟢 EBIT
EBIT for Amazon in the most recent quarter is 24,977 million USD, compared to 17,422 million USD in the previous quarter, with a long-term trend value of 30,169 million USD. This increase reflects improved operational performance and higher profitability, aligning with the long-term growth trajectory.
EBIT
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
EBIT
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🟢 Risk Assessment
Assessing the risks associated with Amazon is crucial for understanding the challenges that may impact its financial performance and long-term sustainability. Below is an analysis of key risk factors affecting the company.
Market Risk
Amazon operates in highly competitive global markets, facing strong competition from both traditional retailers and technology firms. Economic downturns, shifts in consumer behaviour, and currency fluctuations may affect sales and profitability. Additionally, geopolitical tensions and trade restrictions can disrupt supply chains and limit market expansion.
Financial Risk
Despite strong revenue growth, Amazon’s profitability is influenced by high operating costs, including logistics, cloud infrastructure, and labour expenses. Interest rate fluctuations and inflationary pressures can impact borrowing costs and overall financial stability. Moreover, the company’s reliance on AWS for a significant portion of its profits exposes it to risks associated with changing demand for cloud services.
Operational Risk
Amazon’s vast supply chain and fulfilment network are vulnerable to disruptions caused by natural disasters, cyberattacks, or technical failures. Labour disputes and workforce-related challenges, such as unionisation efforts and employee retention, pose additional risks to operational efficiency. Furthermore, increasing reliance on automation and AI introduces potential risks related to system failures and technological dependencies.
Regulatory Risk
Amazon faces growing regulatory scrutiny regarding data privacy, antitrust concerns, tax policies, and labour rights in multiple jurisdictions. Stricter regulations on e-commerce and cloud computing could impact business operations and profitability. Compliance costs and potential legal actions may further pose financial and reputational risks.
Overall Risk Assessment
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🟡 Piotroski F-Score Analysis
Piotroski F-Score analysis is a robust methodology designed to assess the financial strength and operational efficiency of companies, providing valuable insights for investment decision-making.
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
| Previous TTM | Current TTM | Score | |
| Net Income | 59,248 | 77,670 | 1 |
| ROA | 10.33% | 10.82% | 1 |
| Net Operating Cash Flow | 9,723 | 6,630 | 1 |
| OCF > Net Income | 56,629 | 61,844 | 1 |
| Long-Term Debt | 220,036 | 220,481 | 0 |
| Current Ratio | 1.06 | 1.05 | 0 |
| New Shares Issued (mln) | 10,593 | 10,731 | 0 |
| Gross Margin | 48.85% | 50.29% | 1 |
| Total Asset Turnover Ratio | 1.11 | 1 | 0 |
| Piotroski F-Score | 5/9 |
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🟢 Altman Z-Score Analysis
Altman Z-Score is a widely recognised financial metric used to evaluate the risk of bankruptcy for companies. It is particularly relevant for assessing the creditworthiness of manufacturing and industrial companies but has also been adapted for other industries.
Source: MarketVectors.Pro, Amazon Financial Reports
| Q4 25 | |||
| Altman Z-Score (TTM) | 6.5 | ||
| 0 | Distress | 1.8 | Grey | 2.99 | Safe | 4 |
Source: MarketVectors.Pro, Amazon Financial Reports
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🟡 Key Assets Components
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
As of last quarter the company reported total assets of 818,042 million USD, representing an increase of 30.9% compared to the previous year the same quarter 624,894 million USD. The largest contributor to this change in current assets was Receivables, which grew by 22.1% to 67,729 million USD from 55,451 million USD.
Assets
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Cash & Short-Term Inv | 101,202 | 123,029 | 21.57% |
| Inventory | 34,214 | 38,325 | 12.02% |
| Receivables | 55,451 | 67,729 | 22.14% |
| Total Current Assets | 190,867 | 229,083 | 20.02% |
| Property and Equipment | 328,806 | 443,079 | 34.75% |
| Goodwill, Intangibles | 23,074 | 23,273 | 0.86% |
| Other Long-Term Assets | 82,147 | 113,410 | 38.06% |
| Total Assets | 624,894 | 818,042 | 30.91% |
Assets
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🔴 Key Liabilities & Equity
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Total current liabilities increased by 21.5%, indicating a potential growth in operational activities. This change may affect the company's ability to manage its working capital efficiently. Long-term debt increased by 24.8%, suggesting a rise in long-term obligations. This shift could have implications for the Amazon's financing costs and overall debt strategy.
Liabilities & Equity
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Accounts Payable | 94,363 | 121,909 | 29.19% |
| Accrued Expenses, Other | 66,965 | 0 | -100.00% |
| Total Current Liabilities | 179,431 | 218,005 | 21.50% |
| Long-term Lease | 78,277 | 87,339 | 11.58% |
| Long-term Debt | 52,623 | 65,648 | 24.75% |
| Total Liabilities | 338,924 | 406,977 | 20.08% |
| Shareholders’ Equity | 285,970 | 411,065 | 43.74% |
Liabilities & Equity
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🟡 Income Statement Analysis
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
As of Q4 25, Amazon reported a revenue of 213,386 million USD, marking an increase of 13.6% compared to the previous year to 187,792 million USD. Operating expenses rose to 78,450 million USD, increasing by 30.1% year-on-year from 60,286 million USD.
Revenue & Net Income
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Revenue | 187,792 | 213,386 | 13.63% |
| Operating Expenses | 60,286 | 78,450 | 30.13% |
| Operating Income | 21,203 | 24,977 | 17.80% |
| Net Income | 20,004 | 21,192 | 5.94% |
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Revenue & Net Income
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🟢 Cash Flow Analysis
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
The company’s cash flow performance over the year demonstrates varied trends across key categories. Net operating cash flows increased by 19.3% from 45,636 million USD to 54,459 million USD, reflecting stronger cash generation from core business activities. Net investing cash flows decreased by 26.2% from -37,443 million USD to -47,245 million USD, indicating higher expenditure on investments, potentially related to strategic initiatives.
Operating Cash Flow
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Net Operating Cash Flows | 45,636 | 54,459 | 19.33% |
| Net Investing Cash Flows | -37,443 | -47,245 | -26.18% |
| Net Financing Cash Flows | -3,308 | 12,291 | 471.55% |
| Net Cash Flow, Equivalents | 4,885 | 19,505 | 299.28% |
Operating Cash Flow
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🟢 EBITDA
Amazon's EBITDA for the most recent quarter is 46,755 milion USD (+2.7%), compared to 45,504 milion USD in the previous quarter, with a long-term trend value of 45,308 milion USD. This increase in EBITDA suggests improved operational efficiency and revenue growth, indicating stronger core business performance.
EBITDA
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
EBITDA
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🟢 Net Income
Net income for the most recent quarter is 21,192 milion USD (+0.0%), compared to 21,187 milion USD in the previous quarter, with a long-term trend value of 70,188 milion USD. This increase in net income reflects improved profitability, potentially driven by higher revenue growth, enhanced cost efficiency, or favorable market conditions.
Net Income
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Net Income
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🟡 ROE (Return on Equity, %) ★ Buffett's Key Metric
Amazon's return on equity (ROE) for the most recent quarter is 18.9%, compared to 20.7% in the previous quarter, with a long-term trend value of 23.0%. This decline in ROE may indicate reduced profitability, increased equity base, or other financial challenges affecting the company's return on investment.
ROE Indicator
Source: MarketVectors.Pro, Amazon Financial Reports (%)
ROE Indicator
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🟡 ROA (Return on Assets, %)
Return on assets (ROA) for the most recent quarter is 9.5%, compared to 10.5% in the previous quarter, with a long-term trend value of 12.1%. This decline in ROA may indicate lower profitability, increased asset base, or operational inefficiencies affecting the company's ability to generate returns.
ROA Indicator
Source: MarketVectors.Pro, Amazon Financial Reports (%)
ROA Indicator
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🟢 Operating Margin (%) ★ Buffett's Key Metric
Amazon's operating margin for the most recent quarter is 11.7%, compared to 9.7% in the previous quarter, with a long-term trend value of 16.7%. This increase in operating margin reflects improved cost efficiency, higher revenue retention, or a stronger pricing strategy. The rise suggests that Amazon is effectively managing its operational expenses while maintaining revenue growth.
Operating Margin
Source: MarketVectors.Pro, Amazon Financial Reports (%)
Operating Margin
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🟡 Net Margin (%) ★ Buffett's Key Metric
Net margin for the most recent quarter is 9.9%, compared to 11.8% in the previous quarter, with a long-term trend value of 38.6%. This decline in net margin may indicate rising operational costs, pricing pressures, or changes in revenue mix that are affecting overall profitability. A lower net margin suggests that expenses have grown at a faster rate than revenue, potentially requiring adjustments in cost management or pricing strategy.
Net Margin
Source: MarketVectors.Pro, Amazon Financial Reports (%)
Net Margin
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🟢 Long-Term Debt & EBITDA
The current long-term debt is 65,648 million USD, and EBITDA is 46,755 million USD. The long-term debt to EBITDA ratio for the most recent quarter is 140%, compared to 112% in the previous quarter, with a long-term trend value of 145%. This increase in the long-term debt to EBITDA ratio may indicate higher leverage, reduced earnings capacity, or an increase in long-term debt obligations. A rising ratio suggests that Amazon may be taking on additional debt or facing challenges in maintaining EBITDA growth.
Long-Term Debt to EBITDA Ratio
Source: MarketVectors.Pro, Amazon Financial Reports (%)
Despite the increase, the ratio remains within the safe range, suggesting financial stability. Investors and analysts will closely monitor future financial performance to determine whether this increase reflects temporary fluctuations or a more significant shift in the company's capital structure.
Long-Term Debt & EBITDA
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Long-Term Debt to EBITDA Ratio
Despite the increase, the ratio remains within the safe range, suggesting financial stability. Investors and analysts will closely monitor future financial performance to determine whether this increase reflects temporary fluctuations or a more significant shift in the company's capital structure.
Long-Term Debt & EBITDA
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🟢 Long-Term Debt & Assets
The current long-term debt is 65,648 million USD, and total assets are 818,042 million USD, resulting in a debt ratio of 8.0%. This increase in the long-term debt-to-assets ratio may indicate a higher dependency on long-term debt or a decrease in total assets, potentially leading to increased financial risk. A rising ratio suggests that Amazon may be taking on additional liabilities or experiencing challenges in maintaining asset growth.
Long-Term Debt to Assets Ratio
Source: MarketVectors.Pro, Amazon Financial Reports (%)
The debt-to-assets ratio remains in the low-risk range <40%, which is a sign of a strong financial position. Investors and analysts will closely monitor future financial performance to determine whether this increase reflects temporary fluctuations or a more significant shift in the company's capital structure.
Long-Term Debt & Assets
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Long-Term Debt to Assets Ratio
The debt-to-assets ratio remains in the low-risk range <40%, which is a sign of a strong financial position. Investors and analysts will closely monitor future financial performance to determine whether this increase reflects temporary fluctuations or a more significant shift in the company's capital structure.
Long-Term Debt & Assets
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🟢 Long-Term Debt & Equity ★ Buffett's Key Metric
The current long-term debt is 65,648 million USD, while Total Equity stands at 411,065 million USD, resulting in a debt-to-equity ratio of 16.0%. This increase in the long-term debt-to-equity ratio may indicate a greater reliance on leverage, which could increase financial risk. A rising ratio suggests that Amazon may be taking on additional debt obligations or experiencing challenges in equity growth, which could impact long-term financial stability.
Long-Term Debt to Equity Ratio
Source: MarketVectors.Pro, Amazon Financial Reports (%)
The debt-to-equity ratio remains within the optimal range <150%, suggesting a well-balanced capital structure. Investors and analysts will closely monitor upcoming financial reports to determine whether this increase reflects temporary fluctuations or a more significant shift in financial strategy.
Long-Term Debt & Equity
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Long-Term Debt to Equity Ratio
The debt-to-equity ratio remains within the optimal range <150%, suggesting a well-balanced capital structure. Investors and analysts will closely monitor upcoming financial reports to determine whether this increase reflects temporary fluctuations or a more significant shift in financial strategy.
Long-Term Debt & Equity
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🟢 Equity to Assets
The current equity is 411,065 million USD, while total assets stand at 818,042 million USD, resulting in an equity-to-assets ratio of 50.2%. This decline in the equity-to-assets ratio may signal increased financial leverage or a reduction in equity levels. A falling ratio suggests that Amazon may be increasing its reliance on debt financing or facing equity dilution, which could affect long-term financial resilience.
Equity to Assets Ratio
Source: MarketVectors.Pro, Amazon Financial Reports (%)
The equity-to-assets ratio remains in the healthy above the 40%, demonstrating a well-balanced financial structure. Investors and analysts will closely monitor future capital allocation strategies to determine whether this decrease is a short-term fluctuation or a longer-term structural change.
Equity & Assets
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Equity to Assets Ratio
The equity-to-assets ratio remains in the healthy above the 40%, demonstrating a well-balanced financial structure. Investors and analysts will closely monitor future capital allocation strategies to determine whether this decrease is a short-term fluctuation or a longer-term structural change.
Equity & Assets
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🟢 Quick Ratio
The quick ratio for Amazon is 0.88, compared to 0.80 in the previous quarter, with a long-term trend value of 0.82. This increase in the quick ratio suggests improved short-term liquidity, indicating that the company has a stronger ability to cover its immediate liabilities with liquid assets. The ratio remains within the cautionary range 0.8–1.0, suggesting that liquidity should continue to be monitored.
Quick Ratio
Source: MarketVectors.Pro, Amazon Financial Reports
Quick Ratio
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🟢 Current Ratio
The current ratio for Amazon is 1.05, compared to 1.01 in the previous quarter, with a long-term trend value of 1.01. This increase in the current ratio suggests improved liquidity, indicating that the company has a stronger ability to cover its short-term liabilities with current assets. Although the ratio has increased, it remains within the optimal range of 1.0–2.0, ensuring a healthy balance between liquidity and operational efficiency.
Current Ratio
Source: MarketVectors.Pro, Amazon Financial Reports
Current Ratio
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🟢 Net Working Capital
The net working capital (NWC) for Amazon in the most recent quarter is 11,078 million USD, compared to 1,670 million USD in the previous quarter, with a long-term trend value of 7,237 million USD.
Net Working Capital
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Net Working Capital
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🟢 Inventory Turnover Ratio
The inventory turnover ratio for Amazon in the most recent quarter is 9.30, compared to 9.01 in the previous quarter. This increase in inventory turnover indicates that Amazon is selling goods more rapidly, suggesting strong demand, efficient inventory management, and optimized supply chain processes. The turnover ratio is above the 6.0, reflecting high inventory efficiency and fast-moving stock, which minimizes storage costs and obsolescence risks.
Inventory Turnover Ratio
Source: MarketVectors.Pro, Amazon Financial Reports
Inventory Turnover Ratio
🔴 Asset Turnover Ratio
The assets turnover ratio for Amazon in the most recent quarter is 0.88, compared to 0.95 in the previous quarter. This decline in the assets turnover ratio may suggest lower revenue generation, excess assets, or inefficiencies in assets utilization. A decreasing trend could indicate weaker sales growth or an overinvestment in fixed assets. The ratio has fallen below the 1.0, suggesting that Amazon may have a high level of assets relative to revenue generation. This could indicate underutilized resources or the need for improved asset efficiency.
Assets Turnover Ratio
Source: MarketVectors.Pro, Amazon Financial Reports
Assets Turnover Ratio
🔴 Book Value / Share
The book value per share (BVPS) is a key valuation metric that represents the equity value per outstanding share. Calculated by dividing total book value by the number of shares, it helps assess whether a stock trades above or below its book value.
Source: MarketVectors.Pro, Amazon Financial Reports (USD)
Book Value per Share Valuation
Source: MarketVectors.Pro, Amazon Financial Reports (USD, generated on 23 February 2026)
| Q4 24 | Q4 25 | Change (%) | |
| Book Value / Share | 27 | 38.31 | 41.89 % |
Book Value per Share Valuation
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🟡 Graham Method
The intrinsic value of Amazon’s stock is calculated using Benjamin Graham’s formula, which takes into account the current earnings per share (EPS) and an assumed growth rate (g), providing a simplified yet insightful perspective on a company’s value.
Benjamin Graham Valuation
Source: MarketVectors.Pro, Amazon Financial Reports (USD, generated on 23 February 2026)
Benjamin Graham Valuation
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🟡 Discounted Cash Flow ★ Buffett's Key Metric
The discounted cash flow (DCF) method is used to estimate Amazon’s intrinsic value by projecting future cash flows and discounting them to their present value. This approach considers the company’s potential to generate cash flows in the future, taking into account the time value of money and associated risks.
The terminal value represents the value of Amazon’s cash flows beyond the five-year forecast horizon. It is calculated using the Gordon Growth Model, assuming a perpetual growth rate of 7.5% and WACC of 8.3%. The calculated terminal value is 2,907,507 million USD.
Total Intrinsic Value Calculations
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Assuming 10,731 million shares outstanding, the intrinsic value per share is approximately 186.75 USD. The current market price of Amazon’s stock is 210.58 USD. Discounted cash flow valuation indicates that the stock is 12.8% overvalued, trading above its intrinsic value.
Discounted Cash Flow Valuation
Source: MarketVectors.Pro, Amazon Financial Reports (USD, generated on 23 February 2026)
| Value | |
| Present Value of FCFs | 52,429 |
| Present Value of Terminal Value | 1,951,545 |
| Total Intrinsic Value | 2,003,974 |
Discounted Cash Flow Valuation
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🟢 Assets Correlation
The Pearson correlation analysis for Amazon examines the relationship between share price and key financial indicators. Gross profit has a correlation of 0.94, which indicates a strong relationship, meaning profitability is a key driver of stock price movements. Operating income is correlated at 0.88, highlighting a strong relationship between operating profitability and market valuation.
Source: MarketVectors.Pro, Amazon Financial Reports
Current liabilities are correlated at 0.94, implying that short-term obligations are closely monitored by investors, influencing stock valuation. Total assets have a correlation of 0.94, confirming a strong relationship between asset growth and market performance.
Key Financial Indicators Growth Dynamics
Source: MarketVectors.Pro, Amazon Financial Reports, Index=100 on Q2 11
| Pearson Correlation | |
| Share Price | 1 |
| Gross Profit | 0.94 |
| Operating Income | 0.88 |
| Current Liabilities | 0.94 |
| Total Assets | 0.94 |
Key Financial Indicators Growth Dynamics
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🟡 FCF Margin Scenarios
• Optimistic Scenario: 1%, driven by operational efficiencies and cost optimisation.
• Base Case: 1% of revenue, consistent with historical trends.
• Pessimistic Scenario: 1%, reflecting higher operating and labour costs. Impact of Changes in FCF Margin
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
An approximately -0-percentage-point increase in the FCF margin to 1%, results in an additional -526 milion USD in FCF, highlighting the critical role of operational efficiency. Conversely, a decrease to 1% reduces FCF by 526 milion USD, illustrating the significant impact of profitability on cash flow generation.
Projected FCF Margin Scenarios Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
• Base Case: 1% of revenue, consistent with historical trends.
• Pessimistic Scenario: 1%, reflecting higher operating and labour costs. Impact of Changes in FCF Margin
| FCF Margin (%) | Revenue TTM | FCF TTM | Difference | |
| Optimistic | 1% | 716,924 | 7,169 | -526 |
| Base Case | 1% | 716,924 | 7,695 | – |
| Pessimistic | 1% | 716,924 | 7,169 | -526 |
Projected FCF Margin Scenarios Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
🟡 Operating Costs Scenarios
• Optimistic Scenario: 86%, reflecting enhanced efficiency and lower costs.
• Base Case: 89% of revenue, aligned with historical trends and cost structures.
• Pessimistic Scenario: 92%, driven by rising wages and increased energy costs. Impact of Changes in FCF Margin
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Reducing operational costs to 86% of revenue leads to a 20,394 milion USD increase in operating profit, emphasising the significance of cost control in enhancing margins. Increasing costs to 92% of revenue results in a 22,621 milion USD decline in operating profit, highlighting the sensitivity of profitability to rising expenses.
Projected Operating Costs Scenarios Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
• Base Case: 89% of revenue, aligned with historical trends and cost structures.
• Pessimistic Scenario: 92%, driven by rising wages and increased energy costs. Impact of Changes in FCF Margin
| Operating Costs (%) | Revenue TTM | Operating Profit | Difference | |
| Optimistic | 86% | 716,924 | 100,369 | 20,394 |
| Base Case | 89% | 716,924 | 79,975 | – |
| Pessimistic | 92% | 716,924 | 57,354 | -22,621 |
Projected Operating Costs Scenarios Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
🟡 Revenue Growth Scenarios
Optimistic Scenario: Projected to grow by 16% annually, driven by:
• Robust macroeconomic conditions.
• Strong industry growth with minimal disruptions.
• Favorable regulatory and competitive environment. Base Case: Projected to grow by 13% annually, driven by: • Stable macroeconomic conditions.
• Balanced market growth with manageable risks.
• Limited external disruptions from regulation or supply chains. Pessimistic Scenario: Projected to grow by 11% annually, driven by: • Global economic uncertainty and potential downturn.
• Increased competition and rising operational costs.
• Regulatory and supply chain challenges impacting business operations.
Source: MarketVectors.Pro, Amazon Financial Reports (million USD, TTM)
The projected revenue for the next twelve months varies depending on the scenario. Under the optimistic scenario, revenue is expected to increase by 16% to 830,297 million USD, reflecting strong market growth and operational efficiency. In the base case scenario, revenue is forecasted to grow by 13% to 811,402 million USD, assuming stable economic conditions and consistent business expansion. However, under the pessimistic scenario, revenue is projected to increase by 11% to 792,506 million USD, reflecting potential economic slowdowns or adverse market conditions.
Projected Revenues Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
The variation between projected scenarios highlights the Amazon's ability to perform across a range of market conditions. The growth even in the pessimistic case reflects a degree of resilience and suggests a strong underlying business model. This outlook supports confidence in management’s ability to navigate uncertainty while sustaining forward momentum. Scenario analysis enhances strategic visibility, helping stakeholders understand the potential bandwidth of future results.
• Strong industry growth with minimal disruptions.
• Favorable regulatory and competitive environment. Base Case: Projected to grow by 13% annually, driven by: • Stable macroeconomic conditions.
• Balanced market growth with manageable risks.
• Limited external disruptions from regulation or supply chains. Pessimistic Scenario: Projected to grow by 11% annually, driven by: • Global economic uncertainty and potential downturn.
• Increased competition and rising operational costs.
• Regulatory and supply chain challenges impacting business operations.
| Revenue | Net Income | Revenue (Next) | Net Income (Next) | |
| Optimistic | 716,924 | 77,670 | 830,297 | 89,953 |
| Base Case | 716,924 | 77,670 | 811,402 | 87,906 |
| Pessimistic | 716,924 | 77,670 | 792,506 | 85,858 |
Projected Revenues Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
The variation between projected scenarios highlights the Amazon's ability to perform across a range of market conditions. The growth even in the pessimistic case reflects a degree of resilience and suggests a strong underlying business model. This outlook supports confidence in management’s ability to navigate uncertainty while sustaining forward momentum. Scenario analysis enhances strategic visibility, helping stakeholders understand the potential bandwidth of future results.
🟡 Net Income Growth Scenarios
The projected net income for the next twelve months varies depending on the scenario. Under the optimistic scenario, net income is expected to increase by 16% to 89,953 million USD, reflecting improved profitability and strong financial performance. In the base case scenario, net income is forecasted to grow by 13% to 87,906 million USD, assuming stable market conditions and effective cost management. However, under the pessimistic scenario, net income is projected to increase by 11% to 85,858 million USD, reflecting potential challenges such as higher operational costs or slowing revenue growth.
Projected Net Income Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
The projected resilience in net income across all scenarios suggests a stable underlying profitability profile. Even under adverse assumptions, the Amazon is expected to maintain earnings growth, indicating effective cost controls and strong core operations. This consistency can help support valuation multiples and reduce perceived investment risk. Scenario modeling enhances transparency and strengthens the credibility of financial forecasting in the eyes of stakeholders.
Projected Net Income Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
The projected resilience in net income across all scenarios suggests a stable underlying profitability profile. Even under adverse assumptions, the Amazon is expected to maintain earnings growth, indicating effective cost controls and strong core operations. This consistency can help support valuation multiples and reduce perceived investment risk. Scenario modeling enhances transparency and strengthens the credibility of financial forecasting in the eyes of stakeholders.
🟢 Financial Performance Overview
Amazon demonstrated stronger financial performance in the most recent period, reflecting strong revenue growth, operational efficiency, and profitability improvements revenue increased by 13.6% year-over-year, reaching 213,386 million USD, supported by strong sales performance across all key markets. At the same time, EBITDA grew by 26.9% year-over-year, totaling 46,755 million USD, driven by cost optimization and higher-margin business segments.
Revenue & Net Income
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Notably, net income surged by 5.9% year-over-year, reaching 21,192 million USD, improving Amazon's net margin, which expanded to 9.9%. This growth reflects effective expense control and revenue expansion, strengthening the company’s bottom-line performance.
Revenue & Net Income
Notably, net income surged by 5.9% year-over-year, reaching 21,192 million USD, improving Amazon's net margin, which expanded to 9.9%. This growth reflects effective expense control and revenue expansion, strengthening the company’s bottom-line performance.
Key Performance Indicators (KPIs)
Source: MarketVectors.Pro, Amazon Financial Reports (YoY)
Valuation & Market Position
Amazon’s valuation metrics indicate a strengthened financial standing. The EV to EBITDA (TTM) ratio currently stands at 15.92, decreasing from 19.12, reflecting a dual shift – rising operational performance and declining market valuation. This indicates a balanced valuation, with stable investor perception
EV to EBITDA Ratio
Source: MarketVectors.Pro, Amazon Financial Reports (TTM)
The EV to EBITDA trendline illustrates Amazon’s valuation trajectory, with a declining enterprise value despite improving earnings, possibly signaling undervaluation or market pessimism.
Source: MarketVectors.Pro, Amazon Financial Reports (TTM)
Meanwhile, the P/E (Price to Earnings) ratio has declined to 29.5, down from 35.4 a year ago, potentially signaling a more balanced market outlook on Amazon’s earnings potential. The P/S (Price to Sales) ratio has declined to 3.19, compared to 3.59 a year ago, suggesting a more conservative valuation stance among investors.
| Change (%) | |
| Revenue Growth | 13.6% |
| EBITDA Growth | 26.9% |
| Net Income Growth | 5.9% |
| Net Margin | 9.9% |
| EPS | 29.4% |
EV to EBITDA Ratio
The EV to EBITDA trendline illustrates Amazon’s valuation trajectory, with a declining enterprise value despite improving earnings, possibly signaling undervaluation or market pessimism.
| Ratio (TTM) | |
| EV/EBITDA | 15.92 |
| P/E Ratio | 29.09 |
| P/S Ratio | 3.19 |
Cash Flow & Liquidity ★ Buffett's Key Metric
Amazon maintains a strengthened cash flow position, highlighting improved liquidity and prudent financial management. The increase in cash flow suggests enhanced operational efficiency and a stronger ability to meet financial obligations.
• Free Cash Flow (FCF) – totaled 14,937 million USD, marking an improvement in liquidity.
• Net Operating Cash Flow – declined by 31.8% year-over-year, reaching 6,630 million USD, suggesting weaker cash inflows from operating activities.
• Long-term debt – increased by 0.2%, which may lead to higher financial leverage and increased interest obligations.
Amazon’s ability to generate declining cash flow while increasing debt reinforces its financial flexibility, though ongoing financial management is essential to sustain long-term growth and strategic investments.
Free Cash Flow
Source: MarketVectors.Pro, Amazon Financial Reports (million USD)
Amazon's financial performance in the most recent quarter shows that EBITDA reached 46,755 million USD, reflecting improved operational efficiency and earnings growth. The company's return on equity (ROE) is 18.9%, pointing to reduced return on shareholder capital and weaker financial performance. The long-term debt-to-equity ratio stands at 16.0%, which may reflect rising leverage and a shift toward debt-based financing. The quick ratio is 0.88, showing improved liquidity and better short-term risk coverage. The EV/EBITDA ratio is currently 15.92x, reflecting a balanced or attractive valuation level relative to earnings. Overall, Amazon’s financial health remains strong, with consistent revenue expansion, cost efficiency improvements, and strong liquidity. Meanwhile, the P/E ratio is declining, while Amazon’s long-term prospects remain positive.
Free Cash Flow
Amazon's financial performance in the most recent quarter shows that EBITDA reached 46,755 million USD, reflecting improved operational efficiency and earnings growth. The company's return on equity (ROE) is 18.9%, pointing to reduced return on shareholder capital and weaker financial performance. The long-term debt-to-equity ratio stands at 16.0%, which may reflect rising leverage and a shift toward debt-based financing. The quick ratio is 0.88, showing improved liquidity and better short-term risk coverage. The EV/EBITDA ratio is currently 15.92x, reflecting a balanced or attractive valuation level relative to earnings. Overall, Amazon’s financial health remains strong, with consistent revenue expansion, cost efficiency improvements, and strong liquidity. Meanwhile, the P/E ratio is declining, while Amazon’s long-term prospects remain positive.
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