Using the industry peer median P/E multiple (trailing + forward), Amazon.com, Inc. (AMZN) has a fair value of $144.91 based on 3 comparable companies in the Specialty Retail industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Amazon.com, Inc.AMZN | 2,292,184 | 29.5x | 27.3x |
| eBay Inc.EBAY | 40,355 | 20.6x | 14.7x |
| Tractor Supply CompanyTSCO | 24,083 | 22.2x | 21.0x |
| Ulta Beauty, Inc.ULTA | 23,439 | 20.4x | 18.3x |
| Industry Median | 20.6x | 18.3x | |
| (*) Profit after tax | 77,670 | 84,066 | |
| Equity Value | 1,597,783 | 1,540,178 | |
| (/) Outstanding shares | 10,827 | 10,827 | |
| Fair Price | $148 | $142 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.