Amazon (AMZN) fundamentals: P/E, valuation, undervalued?

Amazon · Consumer Discretionary · ref. ETF XLY · price $256.26
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In short — Amazon trades at 20.9× earnings (P/E), 24.7× forward, with a net margin of 17.4 % and revenue growth of +20 %. Read: Cheap for the growth (P/E 25 for ~242% growth (PEG 0.1)).

Is Amazon stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.

📈 1-year price
$256.26+10.6% over range
Aug 28, 25low $198.79 · high $284.02Aug 27, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
SellBuy
Buy
97% recommend buying · 31 analysts
Valuation : Cheap for the growth — P/E 25 for ~242% growth (PEG 0.1)

Valuation

20.9
P/E (price/earnings)
24.7
Forward P/E
0.09
PEG
5.0
Price/book (P/B)
$2.76T
Market cap
12.25
EPS

Profitability & growth

17.4 %
Net margin
+20 %
Revenue growth
+242 %
Earnings growth
$251.6B
Total debt

Amazon income statement

Fiscal yearRevenueNet incomeMargin
2022$514.0B$-2.7B-0.5 %
2023$574.8B$30.4B5.3 %
2024$638.0B$59.2B9.3 %
2025$716.9B$77.7B10.8 %
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.

Frequently asked questions

What is Amazon's P/E and is the stock undervalued? What's a good P/E?

Amazon's P/E is 20.9 (forward 24.7). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Cheap for the growth".

Is Amazon profitable?

Amazon has a net margin of 17.4 % (EPS 12.25). The company is profitable.

Is AMZN stock expensive?

Our read: "Cheap for the growth" — P/E 25 for ~242% growth (PEG 0.1). Cross-check with growth and sector.

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