Amazon.com, Inc. shares have underperformed the S&P 500 in the past year, generating a total return of 0.37 percent.
Amazon is still putting up impressive growth numbers. But with a $2.33 trillion market cap, some investors are wondering if there’s any value left in Amazon stock.
Earnings
A price-to-earnings ratio (PE) is one of the most basic fundamental metrics for gauging a stock’s value. The lower the PE, the higher the value. For comparison, the S&P 500’s PE is currently at about 26.1, nearly double its long-term average of 15.9.
