Stock fact sheet · data as of
Amazon.com, Inc. (AMZN): fair value, margin of safety and Wheel Score
Consumer Cyclical · Specialty Retail · United States · High Growth
Is AMZN undervalued?
At 254.76 (close of 16 Oct 2026), AMZN trades within a few percent of the GLS average fair value of 254.86 (exactly at fair value). 7 models produced a value and they split 2 above the price to 5 below. A stock priced at fair value earns about half of the Wheel Score's Value points; the rest of the score comes from health, moat, premium and stability.
The 7 models disagree widely: DCF gives 45.31 while GLS Growth gives 769.98. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files AMZN under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for AMZN
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 45.31 | -82% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 120.47 | -53% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 405.86 | +59% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 154.09 | -40% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 769.98 | +202% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 148.55 | -42% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 139.75 | -45% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -16.49 | -106% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 328.42 | +29% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - AMZN passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 7.7 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are high - ROIC 13.8%, ROE 18.9%, ROA 9.5% - with debt at 0.37 times equity and negative free cash flow.
Amazon.com, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Online Stores 35%, Third Party Seller Services 23%, Amazon Web Services 21% (quarter Q2 FY2026).
Institutional ownership scores 8/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales; the last recorded Congressional buy was on 4 Sep 2026.
| Piotroski F-score | 6 / 9 | ROIC | 13.8% |
|---|---|---|---|
| GLS Moat | 7.7 / 10 | ROE | 18.9% |
| Debt / equity | 0.37 | ROA | 9.5% |
| Free-cash-flow yield | -0.4% | Payout ratio | 0% |
| Institutions | 8 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 77: Good
AMZN scores 77 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 13/25), Piotroski health (13/20), the GLS moat (12/15), the option premium on offer (20/20) and how easily the stock trades (19/20). Value (13/25) is the part holding the score back.
Implied volatility is 41% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 1,756,628 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 34.0M shares a day on a market cap of $2.75T, with a beta of 1.46 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 13 / 25 | 0% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 12 / 15 | moat 7.7/10 | |
| Premium | 20 / 20 | implied volatility 41% | |
| Stability | 19 / 20 | 34.0M shares/day, $2747.9B cap, beta 1.46 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Amazon.com, Inc. reports earnings on 29 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Specialty Retail
The 12 companies below are the closest to Amazon.com, Inc. by market cap within the Specialty Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BABA Alibaba Group Holding Limited | 111.11 | 95.84 | -16% | 63Fair | $271.8B |
| PDD PDD Holdings Inc. | 81.45 | 507.91 | +84% | 87Prime | $115.9B |
| MELI MercadoLibre, Inc. | 1,856.98 | 1,877.00 | +1% | 72Good | $94.1B |
| ORLY O'Reilly Automotive, Inc. | 88.50 | 54.54 | -62% | 62Fair | $71.6B |
| SE Sea Limited | 95.31 | 113.41 | +16% | 77Good | $58.3B |
| EBAY eBay Inc. | 122.91 | 108.54 | -13% | 71Good | $54.7B |
| AZO AutoZone, Inc. | 3,059.62 | 2,988.47 | -2% | 67Good | $49.9B |
| JD JD.com, Inc. | 27.39 | 114.53 | +76% | 88Prime | $37.0B |
| WSM Williams-Sonoma, Inc. | 242.48 | 148.10 | -64% | 63Fair | $28.6B |
| CPNG Coupang, Inc. | 14.79 | 9.90 | -49% | 45Weak | $26.6B |
| ULTA Ulta Beauty, Inc. | 592.42 | 476.96 | -24% | 61Fair | $25.5B |
| CASY Casey's General Stores, Inc. | 673.63 | 330.95 | -104% | 64Fair | $24.9B |
⚖ Compare AMZN with 7 of them All Consumer Cyclical stocks →
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Start free See the Sunday ScanQuestions about AMZN
Is AMZN undervalued right now?
Not meaningfully: at 254.76 the stock trades within a few percent of the GLS average fair value of 254.86 (exactly at fair value, data as of 16 Oct 2026).
What is the Wheel Score of AMZN and what does it mean?
AMZN scores 77 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for AMZN?
254.86 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Amazon.com, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (after the close), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does AMZN have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 1,756,628 open interest across all expiries and implied volatility of 41% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.