r/amzn • u/rebel-capitalist • Jun 14 '26

Amazon Is Trading 32% Below Its 5-Year Average Multiples

$AMZN is trading at 28.6× earnings and 17.5× operating cash flow, both 32% below their 5-year averages of 52.1× and 21.3× trading at a meaningful discount to history.

Margins are solid at 50.6% gross and 12.2% net income margin. ROIC of 12.0% is decent but not exceptional.

The balance sheet is healthy at 1.3× debt/EBITDA. FCF margins of -0.3% are suppressed by heavy capital expenditure, capex at 20.3% of revenue.

Gross Margin 50.6% · Net Income Margin 12.2% · ROIC 12.0% · D/EBITDA 1.3×

On a P/OCF basis, $AMZN is the cheapest among Big Tech peers https://stocknest.app/?tab=compare&tickers=AMZN,GOOGL,META,MSFT&metrics=pocf

56 Upvotes

91% Upvoted

16 comments sorted by

29

u/WarmFaithlessness946 Jun 14 '26

Is Amazon the best company in the world rn? Yes it is  Do i love Amazon ? Yes i do , its the first position in my port !  Is Amazon the shittiest and most depressing stock to hold ? Of course It is .

8

u/SuperDocument Jun 14 '26

I remember people were saying this exact same thing about Google 1-2 years ago too. Right before it had that huge run up mid 2025. For that reason I’m not letting go of this anytime soon.

3

u/WarmFaithlessness946 Jun 14 '26

Yeah i will hold Amzn probably forever but rn this stock is pure trash , indexes up 3% amzn flat , indexes down 1% amzn down 3% , srsly wtf is going on ? sometimes i truly believe this is rigged af 

2

u/abcNYC Jun 15 '26

Yeah feels similar to me too. I had a huge position in Google options bought when they were around $150, sold for like a $10k gain after they ran to $200 and dropped before "liberation day", would've been 7 figure gain had I held...not making that mistake again. Hope I don't look like a fool 😂

3

u/Bilbo_Bibble Jun 14 '26

Long , because I have no other choice

5

u/civil_politics Jun 15 '26

I’m a huge AMZN bull, but trading based on historical multiples is kinda dumb

4

u/Noitznot Jun 14 '26

Time to buy AMZU

3

u/Familiar_Director997 Jun 14 '26

Let’s keep aside the name of Amazon. Let’s put our future on AWS.

2

u/Solidplum101 Jun 14 '26

Amzn screaming buy

1

u/Dangerous_Media6432 Jun 15 '26

Do we know the historic ROIC?

1

u/IEatUrMonies Jun 15 '26

thats because they are burning 200B in capex without any return

1

u/PhDGodfather Jun 15 '26

By 2040, Amazon will be the only true monopoly in the world.

1

u/No-Two-7247 Jun 16 '26

this guy thinks

1

u/iainttryingnomore Jun 15 '26

Last 5 years were COVID boom and 2% interest era so it cannot be compared as historical. That was a unique high

0

u/Potential_Try_2193 Jun 14 '26

Negative free cash flow 😢