If you look at Amazon's stock you will see rather high valuation, about 103 Price to Earnings ratio. So what will Amazon do to justify this stock price? Hard to tell if anything is possible. Even with a Forward PE (using 2008's projected earnings) at 50, that's pretty darn high for a retailer. WalMart, on the other hand, has a forward PE of about 14. When it all comes down to it, Amazon is a retailer too and their valuation should be in line with the rest of the industry.
Saturday, January 5, 2008
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment