US · Nasdaq · AMZN
Amazon (AMZN) stock analysis: valuation and financials
Consumer Discretionary · Catalog/Specialty Distribution
$261.38 -0.4% Price as of Oct 12, 2026
Wide-moat AWS and marketplace compounder, FY2025 revenue +12.4% with an 11.2% operating margin and near-net-cash balance sheet, but 22.3% capex intensity turned TTM free cash flow negative (-$11.6B); valuation implies 39% base-case downside.
- Market cap
- $2.8T
- P/E
- 20.9x
- EV/Sales
- 3.6x
- FCF yield
- -0.4%
- 52-week range
- $198.79 – $284.02
- Next earnings
- Oct 29, 2026
Research as of Oct 12, 2026
Business quality scorecard
- Growth65
- Profitability50
- Cash flow63
- Balance sheet73
- Capital allocation69
- Valuation39
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Consumers buy retail goods, third-party sellers pay marketplace and fulfillment fees, enterprises pay for AWS usage and advertisers buy sponsored ads; AWS is the profit engine at 57.0% of FY2025 segment operating profit on 18.0% of revenue ($128.7B).
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $469.8B | $514.0B | $574.8B | $638.0B | $716.9B |
| Revenue growth | +21.7% | +9.4% | +11.8% | +11.0% | +12.4% |
| Gross margin | 42.0% | 43.8% | 47.0% | 48.9% | 50.3% |
| Operating margin | 5.3% | 2.4% | 6.4% | 10.8% | 11.2% |
| Net income | $33.4B | -$2.7B | $30.4B | $59.2B | $77.7B |
| Free cash flow | -$14.7B | -$16.9B | $32.2B | $32.9B | $7.7B |
| FCF margin | -3.1% | -3.3% | 5.6% | 5.2% | 1.1% |
Amounts in USD · What is free cash flow?
Margins Gross margin 50.3% FY2025 vs 48.9% FY2024; TTM 50.8% (+143bps). Operating margin 11.2% vs 10.8%; TTM 12.1%. Driver: mix shift to services (AWS +20% FY2025, +37% Q2 FY2026) and fulfillment efficiency, partly offset by $5.2B FTC/severance charges.
- Cash flow WatchTTM operating cash flow $161.4B exceeds net income $135.3B (cash conversion 2.03x); FY2025 OCF rose to $139.5B from $115.9B, supported by $75.2B of D&A. Earnings remain cash-backed.
- Debt LowNet debt is only $9.6B, 0.06x EBITDA of $168.9B; cash plus marketable securities of $123.0B roughly covers gross debt of $132.5B, and interest coverage is 28.1x on $3.3B TTM interest expense.
Balance sheet Leverage · Low
- Cash & short-term investments
- $123.0B
- Total debt
- $132.5B
- Net debt
- $9.6B
- Net debt / EBITDA
- 0.1x
- Interest coverage
- 28.1x
- Current ratio
- 1.0x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateExecution is strong and tenured: FY2025 revenue $716.9B (+12.4%), operating margin 11.2%, net income $77.7B, and ROIC recovered to 18.0% from 6.6% in FY2022.
- Credibility HighRevenue beat the guided high end in four straight quarters: $180.2B vs $179.5B (Q3 FY2025), $213.4B vs $213.0B (Q4 FY2025), $181.5B vs $178.5B (Q1 FY2026), $200.6B vs $199.0B (Q2 FY2026).
Of 10 guided figures checked: 6 beat, 4 in range, 0 missed.
Valuation range
Implied value per share · Price when researched: $261.38
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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