Buy Amazon’s Core Business Get AWS For ‘Free’


  • Amazon buries the segment growth rates at the bottom of its financial reports.
  • The company has 5 different business units growing double-digits.
  • Compared to peers, Amazon’s business units are growing much faster.
  • In totality, Amazon stock is at least 40% undervalued.

Amazon fulfillment center building in Las Vegas

4kodiak/iStock Unreleased via Getty Images

I believe Amazon (NASDAQ:AMZN) is one of the most well covered stocks that is completely misunderstood and undervalued by investors.

Buried on the second to last page of every financial document I’ve recently seen

TTM P/S Amazon Value
Walmart (WMT) 0.66x $145B
Costco (COST) 0.96x $211B
Target (TGT) 0.73x $160.5B
Average 0.78x $172B

Q4. Growth Rate TTM P/S Amazon Ad Value
Google (GOOG) +1% 4.37x $165B
Meta (META) -4.5% 4.01x $151B
Snap (SNAP) Flat 3.72x $140B
Pinterest (PINS) +3.6% 5.9x $222B
Average 4.5x $169.8B

Q3 Growth Rate TTM P/S Amazon Value
eBay (EBAY) -4% 2.79x $328.4B
Etsy (ETSY) +11.7% 6.8x $800.4B
Average 4.8x $564B

Growth Rate P/S AWS Value
Oracle 18% 5.07x $406.1B
IBM Flat 2.02x $161.8B

FWD EPS Growth P/E AWS Value
Oracle 0.12% 17.76x $405.7B
IBM 3.92% 14.29x $326.39

Disclosure: I/we have a beneficial long position in the shares of COST, AMZN, GOOGL, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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