AMZN Value Scorecard - Amazon

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

43/60

moderate value score

Earnings & returns

EPS Trend

5/5

Diluted EPS: -$0.27 (2022), $2.90 (2023), $5.53 (2024), $7.17 (2025). It rose every year; the framework scores that as 5.

ROE Trend

4/5

ROE (net income / common equity): -1.9% (2022), 15.1% (2023), 20.7% (2024), 18.9% (2025). Median 17.0%, lowest -1.9%; the framework scores a median 15-20% as 4.

ROIC

3/5

ROIC of 13.3%: operating income of $79.97B divided by $600.04B of capital (total assets $818.04B minus current liabilities $218.00B), fiscal year to Dec 31, 2025, as filed in the 10-K (SEC EDGAR). The framework scores 10-15% as 3.

Profit Margins

4/5

Net margin of 17.4%; the framework scores 10-20% as 4; gross margin 50.8%, operating margin 13.7%.

Balance sheet & cash

Debt-to-Equity

4/5

Debt-to-equity of 0.46; the framework scores 0.3-0.8 as 4 (total debt $251.64B, total cash $122.99B).

Free Cash Flow

4/5

Free cash flow (operating cash flow minus capital expenditure): -$16.89B (2022), $32.22B (2023), $32.88B (2024), $7.70B (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $83.19B (2022), $113.62B (2023), $172.87B (2024), $250.54B (2025). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

5/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $12.43 x (8.5 + 2 x 20.0) x (4.4 / 4.5) = $589.46 (EPS CAGR 57.2% capped at 20%). Current price $250.00; price is 57.6% below the model value.

DCF Value

1/5

FCF/share = $0.298, stage 1 growth = 11.7% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $1.56, PV of terminal value = $4.74, DCF value = $6.30. Current price $250.00; price is 3865.6% above the model value.

Margin of Safety

3/5

Graham value $589.46 (price is 57.6% below the model value); DCF value $6.30 (price is 3865.6% above the model value).

Price-to-Book

2/5

P/B of 4.89; the framework scores 3.0-5.0 as 2.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 1 of 10 years (2016-2025); lowest 4.0%, highest 15.4%.

Gross margin, each year

Between 35.1% and 50.3% over 10 years (a range of 15.2 points).

Competition, in the company’s own words · 10-K filed Feb 6, 2026

Our businesses encompass a large variety of product types, service offerings, and delivery channels. The worldwide marketplace in which we compete is evolving rapidly and intensely competitive, and we face a broad array of competitors from many different industry sectors around the world.

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

3/5

Capital allocation, 2022-2025: dividends or buybacks paid in 1 of 4 years (fail); $6.00B paid out against $55.90B of free cash flow (pass); total debt $140.12B to $152.99B, up 9.2%, 0.9x EBITDA (pass: not up more than 10%); shares outstanding 10.24B to 10.73B, up 4.8% (fail: up more than 2%). 2 of 4 tests passed; the framework scores that as 3.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $12.43, g = 20.0%, Y = 4.5
    g capped at 20.0% (3-year EPS CAGR was 57.2%)
    IV = $589.46
    Current price $250.00 vs Graham value $589.46 — price is 57.6% below the model value.

  DCF:
    FCF/share = $0.298
    Stage 1 growth = 11.7% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $0.333 → PV $0.303
      Y2: $0.372 → PV $0.308
      Y3: $0.416 → PV $0.312
      Y4: $0.465 → PV $0.317
      Y5: $0.519 → PV $0.322
    Stage 1 PV sum = $1.56
    Terminal value at end of Y5 = $7.64
    PV of terminal value = $4.74
    DCF value = $6.30
    Current price $250.00 vs DCF value $6.30 — price is 3865.6% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $250.00. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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