Amazon.com, Inc. (AMZN)

Growth Stock Valuation · Consumer Cyclical · Internet Retail

Valuation as at 2026-08-12

About Amazon.com, Inc.

Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS).

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Amazon.com, Inc. AMZN

Consumer Cyclical · Internet Retail

Price
$272.27
Market Cap
$2.94T
Free Cash Flow
$3.22B
Revenue (TTM)
$775.68B
Revenue Growth
19.6%
Gross Margin
50.8%
Net Debt
$128.65B
52-Week Range
$196.00–$287.20

What does the current price assume?

At the current price, the market appears to be pricing in about 42.3% initial revenue growth — steep enough that the model's own free cash flow would dip before recovering by year 6, even though Amazon.com, Inc.'s actual free cash flow is already positive.

Amazon.com, Inc.'s trailing free cash flow is $3.22B on 19.6% current revenue growth today. The model's reinvestment charge scales with the assumed growth rate, not the company's actual current pace — funding 42.3% growth takes substantially more reinvestment than the business is really making right now, which is what pushes the modeled figure negative before it recovers.

Amazon.com, Inc.'s price & financial trends

Data as at 2026-08-12

Share price · last 2 years

$272.27 +53% vs 2024-08
S&P 500 $178.50$237.68$219.39$233.22$265.06$272.27 2024-082025-012025-062025-112026-042026-08

Revenue Per year

$716.92B +39% vs FY22
$513.98B$574.78B$637.96B$716.92BFY22FY23FY24FY25

Free cash flow Per quarter

$-18.17B -127% vs Q1 '25
$-8.00B$332.0M$430.0M$14.94B$-18.17BQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26

Operating margin trajectory Per year

11.2% +368% vs FY22
2.4%6.4%10.8%11.2%FY22FY23FY24FY25

Growth Score

Good Fit3 of 5 criteria passed
Rule of 40 (Growth % + FCF Margin % >= 40)20.0%
Revenue Growth > 20%19.6%
Gross Margin > 50%50.8%
Cash Runway > 24 MonthsSkipped
Operating Margin Trajectory Improving2.4% -> 11.2%
Dilution (Diluted Shares Growth) <= 10%/yr1.0%

Value investing scale · Buffett · Dalio · Graham

Partial Fit
11 / 20 combined score

See the full Buffett, Dalio & Graham breakdown for AMZN →

The two models, in detail

Each shown with what it says the company is worth today and what growth the current price already implies — not just a single point estimate.

Multi-Stage DCF

$133.09
-51.1% margin of safety
Deeply Overvalued

EV / Sales

$131.90
-51.6% margin of safety
Deeply Overvalued
Implied EV/Sales at the current price: 3.95x (vs. today's reported 3.95x)

These numbers come from running Amazon.com, Inc.'s revenue and margin trajectory through the Multi-Stage DCF and EV/Sales formulas above — not from any view on the news, management, or AMZN's competitive position. What is a multi-stage DCF?

Want to test your own growth, margin, or discount-rate assumptions?Open the full interactive calculator, pre-filled with AMZN →

More S&P 500 stocks we've valued

Not financial advice. Multi-Stage DCF and EV/Sales valuations are highly sensitive to assumptions — small changes in growth rate, target margin, or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-12 from Yahoo Finance data, using the same engine as the full Growth Stock Evaluator. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Amazon.com, Inc. (AMZN) undervalued?

The Multi-Stage DCF estimates intrinsic value at $133.09 vs a price of $272.27 on 2026-08-12. This is a mechanical output from a model with genuine assumptions built in (target margin, growth fade, reinvestment) — not advice.

What does "implied growth rate" mean?

It's the reverse question: instead of assuming a growth rate and computing a value, this holds every other assumption fixed and asks what initial revenue growth rate would make the model's value equal to today's actual price. It tells you what the market is already betting on, which you can then judge for plausibility yourself.