Question: Why Amazon PE Is So High?

On the same day, Amazon’s stock price was $1,591.91 with a P/E ratio of 89.19.

One of the reasons Amazon’s P/E is so much higher than Apple’s is that its efforts to expand aggressively on a wide scale have helped keep earnings somewhat suppressed and the P/E ratio high.

What is the PE ratio of Amazon?

Therefore, Amazon.com’s PE Ratio for today is 73.41. During the past 13 years, the highest PE Ratio of Amazon.com was 3732.43. The lowest was 44.56. And the median was 143.83.

Why is Amazon stock more expensive than Apple?

AMZN’s ratios for P/E and EV/EBITDA are higher (more expensive) relative to AAPL’s because Amazon is simply no where near as profitable as Apple. So their revenue growth potential is smaller than Amazon’s and they’re not likely able to increase prices significantly.

Is it better to have a higher or lower P E ratio?

Generally speaking, a high P/E ratio indicates that investors expect higher earnings. However, a stock with a high P/E ratio is not necessarily a better investment than one with a lower P/E ratio, as a high P/E ratio can indicate that the stock is being overvalued.

Is Amazon stock a good buy?

Amazon stock remains a good buy, as we’ll get to. However, there are two caveats: Only investors who are long-term focused should consider buying shares. Investors should build their full position by dollar-cost averaging — investing the same dollar amount at some set time interval, such as quarterly.

What is Netflix PE ratio?

About PE Ratio (TTM)

Netflix has a trailing-twelve-months P/E of 89.27X compared to the Broadcast Radio and Television industry’s P/E of 8.24X. Price to Earnings Ratio or P/E is price / earnings. A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its trailing twelve months earnings.