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Yet their Enterprise Value/Revenue is ~2 and Google's is ~4 and Walmart's ~2/3 (.6). Ent Value is sort of the total investment/borrowing/valuation minus cash. S
by logn 14y ago
Yet their Enterprise Value/Revenue is ~2 and Google's is ~4 and Walmart's ~2/3 (.6). Ent Value is sort of the total investment/borrowing/valuation minus cash. So Amazon does more in sales vs their company's leverage compared to Google and worse compared to Walmart.
EV/EBITDA is ~53 vs. Walmart's ~8 vs. Google's ~13. EBITDA is basically earnings but more complex ("earnings before interest, tax, depreciation, and amortization").
From what I've read there's concern Amazon is overvalued, but not what the Slate article portrays as them being some charity case, being invested in by people with ulterior motives to keep consumer prices low (I have no idea if that was even a sarcastic point or not. It's a terrible article).
- kerno 14y agoIt's pretty clearly a sarcastic point. The main thrust of the article is that Amazon appears to be given special treatment by Wall Street analysts and the investment community - everyone is banking on them being able to produce massive profits as a result of their relentless focus on growth at any cost. They can produce a loss for the quarter and have their share price rise significantly - other companies don't have the same luxury.