Core Insights - The article provides a comprehensive analysis of Amazon.com in comparison to its competitors in the Broadline Retail industry, focusing on financial metrics, market position, and growth potential [1] Company Overview - Amazon is the leading online retailer, with retail-related revenue accounting for approximately 75% of total revenue, followed by Amazon Web Services (15%), advertising services (5% to 10%), and other segments [2] Financial Metrics Comparison - Amazon's Price to Earnings (P/E) ratio is 33.90, which is lower than the industry average by 0.79x, indicating potential value [5] - The Price to Book (P/B) ratio of 7.11 exceeds the industry average by 1.1x, suggesting the stock may be trading at a premium relative to its book value [5] - Amazon's Price to Sales (P/S) ratio of 3.58 is 1.58x the industry average, indicating potential overvaluation in relation to sales performance [5] - The Return on Equity (ROE) stands at 5.68%, slightly above the industry average, reflecting efficient use of equity [5] - Amazon's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $36.6 billion, which is 5.91x above the industry average, highlighting strong profitability [5] - The gross profit of $86.89 billion is 5.23x above the industry average, indicating robust earnings from core operations [5] - Revenue growth of 13.33% surpasses the industry average of 10.76%, demonstrating strong sales expansion [5] Debt to Equity Ratio - Amazon's debt-to-equity (D/E) ratio is 0.4, indicating a stronger financial position compared to its peers, as it relies less on debt financing [10] - The D/E ratio allows for a concise evaluation of the company's financial health and risk profile [8] Key Takeaways - Amazon's lower P/E ratio compared to peers suggests potential undervaluation, while high P/B and P/S ratios indicate strong market valuation of its assets and sales [8] - In terms of ROE, EBITDA, gross profit, and revenue growth, Amazon outperforms its industry peers, reflecting strong financial performance and growth potential [8]