Amazon stock: fundamental analysis
Stocks · AMZN · Consumer Cyclical
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). Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 253.71 USD
- Market cap: 2.7T USD
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
ROE of 30.6%: it earns a high return on shareholders' money. Out of every 100 in sales, 17.4 end up as profit.
Financial health
Net debt/EBITDA of 0.8x: it could repay its debt with less than two years of operating profit. Comfortable leverage.
Growth
Revenue is growing 19.6% year on year: a solid pace. Earnings are up 242.3%.
Valuation
It trades at a P/E of 20.4, in line with the 20.4 median of the consumer cyclical companies we track.
Dividend
Amazon does not pay a dividend right now: it reinvests profits or returns cash through buybacks.
Tools
All metrics
| Amazon | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | 30.6% | 26.4% |
| ROA | 6.6% | 7.0% |
| Gross margin | 50.8% | 50.8% |
| Operating margin | 13.7% | 13.7% |
| Net margin | 17.4% | 8.4% |
| Financial health | ||
| Net debt/EBITDA | 0.8x | 2.5x |
| Debt/equity | 0.5x | 0.6x |
| Current ratio | 1.0x | 1.2x |
| Growth | ||
| Revenue growth | 19.6% | 7.4% |
| Earnings growth | 242.3% | 8.0% |
| Valuation | ||
| P/E ratio | 20.4x | 20.4x |
| Forward P/E | 24.5x | 18.7x |
| EV/EBITDA | 16.8x | 15.4x |
| Price/book | 5.0x | 7.0x |
| FCF yield | 0.1% | 3.6% |
| Dividend | ||
| Dividend yield | — | 3.1% |
| Payout ratio | 0.0% | 59.7% |
| Beta (volatility) | 1.4x | 1.0x |
Frequently asked questions
What is Amazon's P/E ratio?
Amazon's P/E is 20.4 based on trailing 12-month earnings and 24.5 on expected earnings. The median for its sector among the companies we track is 20.4. Data as of September 18, 2026.
What dividend does Amazon pay?
Amazon does not pay a dividend right now: it reinvests profits or returns cash through buybacks.
Is Amazon stock expensive?
It trades at a P/E of 20.4, in line with the 20.4 median of the consumer cyclical companies we track. This is an educational reading based on ratios, not a buy or sell recommendation.
Does Amazon have a lot of debt?
Net debt/EBITDA of 0.8x: it could repay its debt with less than two years of operating profit. Comfortable leverage.
What is Amazon's market cap?
Amazon has a market cap of 2.7T USD and its shares trade at 253.71 USD, with a 52-week range of 196.00 USD to 287.20 USD (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.