Amazon Stock Hasn't Been This Cheap in Over a Decade. Has the Sell-Off Gone Too Far?
Amazon's P/E ratio is near multiyear lows.
Overview
Amazon's (NASDAQ: AMZN) valuation has done something surprising. Even though a 29 price-to-earnings (P/E) ratio may not sound cheap, the stock is coming off its lowest valuation since the financial crisis.
The company operates in competitive industries such as retail and cloud computing, and its spending on capital expenditures (capex) likely scared some investors. Nonetheless, Amazon's P/E ratio does not drop below 30 often. Knowing that, has the sell-off in the consumer discretionary stock gone too far, or are Amazon's days of commanding high valuations over?
Image source: Amazon.
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Originally published at www.fool.com.
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