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A question for AMZN longs.

If Amazon is a $500B company with a 195 P/E ratio how does it over time mature into a company with say a 30-40 P/E ratio?

Or in other words how do Amazon's earnings grow in the future to support its current valuation?

Or how does its P/E multiple go materially higher than 200?

Some examples...

A) Approx. same profit margins on approx. same type of business but grows to be a $2.4T company with a P/E ratio of 40.

B) Expands into more profitable types of business, doubles profit margins from current level and becomes a $1.2T company.

C) Doesn't grow business materially but 4-5X current profit.

etc.

Quantitative only please.

Forewarning, very interested in all replies but don't really have time for any debates if that's what you're looking for.



Submitted July 25, 2017 at 01:00PM by didjurydo http://ift.tt/2v5u5pI

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