Amazon Trades at 27× Earnings, Below Walmart & Costco
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Amazon saw its U.S. e‑commerce market share rise from 34.4% in 2024 to 35.7% in 2025, according to Marketplace Pulse.
- Amazon posted a 10% revenue growth in the fourth quarter, outpacing Walmart’s 5.6% and Costco’s 7.4% growth.
- Amazon’s EBITDA is projected to increase 40% this year and a further 23% in 2027.
- Amazon’s Amazon Web Services generated $45.6 billion of the company’s $80 billion operating income in 2025, representing the bulk of its earnings.
- Amazon announced a $200 billion capital‑expenditure plan for the year, primarily to expand AWS compute capacity.
- Amazon trades at a 27‑times forward‑earnings multiple, well below Walmart’s 42‑times and Costco’s 48‑times, while its enterprise‑value multiple is just 10.8× 2026 EBITDA expectations.
Why it matters: Investors gain a cheap exposure to a retailer whose revenue and EBITDA are growing faster than Walmart and Costco, while Amazon’s massive AWS earnings and $200 billion capex plan keep its valuation low, making the stock a compelling value play for long‑term portfolios.
Ask SkimNews
