Stock Valuation / AMZN
Is Amazon.com, Inc. (AMZN) Overvalued? Fair Value & 5-Year Target
Amazon.com, Inc. trades at $258.58 (P/E 20.80). Our reference model estimates a fair value of $838.03 at its recent average P/E of 67.42.
| Current price | $258.58 |
|---|---|
| Current EPS | $12.43 |
| Current P/E | 20.80 |
| Average P/E | 67.42 |
| Fair value (at avg P/E) | $838.03 |
| Upside to fair value | +224.1% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $625.03 |
What drives AMZN's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About Amazon.com, Inc.
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, fire tablets, fire TVs, echo, ring, blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell
Frequently asked questions
What is AMZN's fair value?
At its recent average P/E of 67.42, Amazon.com, Inc. (AMZN) has a reference fair value of about $838.03, which is +224.1% versus the current price of $258.58.
Is Amazon.com, Inc. (AMZN) overvalued or undervalued?
Based on the average-P/E reference model, Amazon.com, Inc. looks undervalued relative to fair value by roughly +224.1%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for AMZN?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $625.03. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive AMZN valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.