Introduction There is the old adage: “you can’t teach an old dog new tricks.” Well, I have been a “card-carrying” and fully committed value investor for more than 45 years now. I think that qualifies me as an “old” value investing dog. But more to the point, I have been consistently following and practicing the …
AMZN
Demystifying the Amazon Valuation Dilemma
Introduction Amazon: the Valuation Dark Side It is no secret that Amazon (AMZN) has been a disruptive force, especially relating to the retail sector. On the other hand, the company is also an enigma to the value focused fundamental investor such as yours truly. Over its entire operating history as a publicly traded company, Amazon …
How to use F.A.S.T. Graphs™ to value high-growth stocks such as Amazon or Google (Alphabet)?
I recently received a question in the MisterValuation forum asking for an article on Google (GOOGL) and Amazon (AMZN). The subscriber indicated they were having a hard time utilizing F.A.S.T. Graphs™, especially with Google, to figure its valuation. I felt this was a reasonable request because it afforded me the opportunity to provide insights on …
How I Explain Amazon’s Stock Performance
Introduction Amazon (AMZN) is a stock that seems to defy conventional wisdom about how a stock is, or should be, valued. Fundamental investors, like yours truly, recognize and respect the importance of the earnings and price relationship. Moreover, I will be so bold as to emphatically state that in the long run profitability (earnings) will …
Amazon is a Great Growth Stock But Extremely Overvalued When its PE Ratio is Interpreted Properly
The PE Ratio – Its Importance as an Investment Tool We believe that one of the most important and useful tools for the serious investor, is the price earnings ratio or PE. It is, however, one of the most misunderstood and misused tools. We believe that learning how to use it properly and understanding its …