$Amazon.com(AMZN)$ is the only stock in the $S&P 500(.SPX)$ analysts REFUSE to value based on profits, they only ever talk about it based on revenue.

Price to sales (TTM) 3.14X
Operating Profit (EBIT) 6.14%
Price to EBIT= (3.14X)/(0.0614)=51.14X

That means for every $100 you invest in AMZN at today's levels you are making less than $2 in pre-tax profit PER YEAR. That's 50 years before you break-even BEFORE taxes.

To put that in perspective the ten year bond is trading at 4.10% (pre-tax yield), so every $100 you put into 10YRs right now you get $4.10 more than double what you get on AMZN's earnings.

Tell me how AMZN cheap without using the word REVENUE?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

  • Top
  • Latest
empty
No comments yet