Amazon’s net profit forecast for 24 years is 47.39B. It has a market capitalization of 1776B.

I tried using Adamsicell’s concept of earnings power.

Amazon’s net profit forecast for 24 years is 47.39B. It has a market capitalization of 1776B.
In other words, the PER is 37 times higher. It appears as 40 on Finviz, which is similar.

Sales forecast for 24 is 590.74B. Amazon commission rate is 17%. 17% of sales is 100B. Net income is 47B. Where did 63B go? But actual R&D expense is 85B. 12B is higher. Cloud is more profitable than market commission.

Amazon earned 136B, excluding all expenses, and spent 85B of the money on research and development for the future. Even if the investment fails and the money is recovered. R&D expenditure is not a one-time expenditure that only helps with sales this year. Also, Amazon can make zero won next year if it decides to.

So the theoretical maximum net income is 136B. 23% of sales are revenue. Theoretically, the minimum PER multiple is 13 times.

In my eyes, Google is PER 14 and Amazon is PER 13. It is undervalued. Amazon is a paid bridge that charges 17% of tolls. When the car doesn’t pass, it leaves 30% to run the cloud business. Most of the net profit is spent on research to create more paid bridges in the future.

For reference, Tesla’s research fund is 4.9B, 20th of Amazon’s. Net profit is 18B. Theoretically, the minimum PER is 28 times higher. It is twice as expensive as Amazon’s. And the toll-free bridge has not yet been charged. It is a company that sells itself rather than subscription fees. However, Tesla will become a platform company like Amazon in the future.