Is Amazon.com, Inc. overvalued or undervalued?

As of 30 April 2024, the valuation grade for Amazon.com, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 36, an EV to EBITDA of 18.37, and a PEG ratio of 0.55, which suggests that the stock may be undervalued relative to its growth prospects.
In comparison to its peers, Amazon's P/E ratio of 36 is lower than MercadoLibre, Inc.'s 57.96, which is considered expensive, while Coupang, Inc. is categorized as very expensive with a P/E of 205.16. Additionally, Amazon's EV to EBITDA ratio of 18.37 is more favorable than MercadoLibre's 32.28, reinforcing its competitive position in the industry. Over the past year, Amazon has returned 24.03%, outperforming the S&P 500's 17.14%, which supports the notion that the stock is performing well relative to the broader market.