AMZN PEG Ratio Analysis
Higher than 48% of Consumer Cyclical sector peers
Updated 1200h ago·SEC filings & market data
Key Takeaway
The PEG ratio—price-to-earnings divided by earnings growth rate—is a tool for assessing whether a stock’s valuation is in line with its expected profit expansion.
Sector Performance
48th percentileAMZN
0.38x
Sector Median
0.49x
Sector Avg
2.66x
Prior Period
0.39x(Jun 2026)
Deep Analysis
The PEG ratio—price-to-earnings divided by earnings growth rate—is a tool for assessing whether a stock’s valuation is in line with its expected profit expansion.
A reading of 0.38x means Amazon trades at a low price relative to its projected growth, often interpreted as undervalued. Against the Consumer Cyclical sector median of 0.57x, Amazon’s PEG is lower, and its 44th percentile rank places it just below the sector midpoint, indicating it is cheaper than a slight majority of peers. The metric lacks a trend due to N/A year-over-year and quarter-over-quarter changes, so no movement direction can be evaluated. The combination of a low absolute PEG with no trend data suggests an opportunity from a valuation standpoint, but the absence of historical context tempers the risk assessment. This PEG ratio supports the overall BULLISH verdict, as a sub‑median multiple implies the stock’s growth prospects are not fully reflected in its price.
Frequently Asked Questions
What does the PEG Ratio tell investors about AMZN?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does AMZN's PEG Ratio compare to its sector?
AMZN's PEG Ratio of 0.38x compares to a Consumer Cyclical sector median of 0.49x, placing it in the 48th percentile.
Who are AMZN's closest peers by PEG Ratio?
The closest Consumer Cyclical peers by PEG Ratio include: BWA (0.61x), SKX (0.66x), BBY (0.31x), CHWY (0.69x), AMCR (0.70x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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0.38x
Sector Median
0.49x
Sector Avg
2.66x
How AMZN's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.