{"id":15058,"date":"2022-06-17T11:35:45","date_gmt":"2022-06-17T11:35:45","guid":{"rendered":"https:\/\/valutico.com\/amazon-valuation-after-120-stock-split\/"},"modified":"2023-11-24T16:25:41","modified_gmt":"2023-11-24T16:25:41","slug":"amazon-valuation-after-120-stock-split","status":"publish","type":"post","link":"https:\/\/valutico.com\/de\/amazon-valuation-after-120-stock-split\/","title":{"rendered":"Amazon: Valuation after 1:20 Stock Split"},"content":{"rendered":"<h1><span style=\"font-weight: 400;\">Amazon Inc.<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Weekly Valuation: Amazon Inc.\u00a0 &#8211; Valutico | 13 June 2022<\/span><\/p>\n<p>Link to valuation: click <a href=\"https:\/\/valutico.com\/companies\/amazon-com-inc-c7ff08d7-41df-4691-be89-dd8e2aca729a\/evaluations\/VQ16VjpIIMgpWFW2l6jdFE5hyJYN9NtNoKdwMstL_Csdzru9Fh-dKGvI8zNJU-yoWYHBjRnFcpsc4qrv8xKCwg\/share\">here<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Amazon (AMZN) competes head-to-head for market share with some of the largest corporations <\/span><span style=\"font-weight: 400;\">in the world. While Amazon started out as an online retailer of books, it has grown over the <\/span><span style=\"font-weight: 400;\">decades to become the largest e-commerce company by revenue in the United States.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The company now executed a stock split &#8211; those are popular with companies whose share prices are comparatively high. In order to make a single share more attractive for\u00a0<\/span><span style=\"font-weight: 400;\">retail investors who can only deploy small tickets. Amazon has now carried out this step for the <\/span><span style=\"font-weight: 400;\">fourth time. In 1998 a split was carried out at a ratio of 1:2, then in January 1999 at a ratio of 1:3. In September of the same year another share split was on the agenda, this time again at a ratio of 1:3. This year\u2019s 1:20 split is the most significant one so far.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">After the end of US trading on Friday, 19 additional Amazon shares were booked into the <\/span><span style=\"font-weight: 400;\">securities account of every Amazon shareholder who owned a share at a certain point in time. <\/span><span style=\"font-weight: 400;\">Thus, Amazon shares ended Friday\u2019s trading on the NASDAQ at 2,447 US dollars. This price is now divided by 20 and thus one Amazon share is worth &amp;quot;only&amp;quot; 122.35 US dollars on a closing price basis.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Splits often have a positive effect on the share price. Take Apple, for example: in the summer of <\/span><span style=\"font-weight: 400;\">2014, the iPhone maker&amp;#39;s stock was trading 6% higher at a ratio of 1:4 six weeks <\/span><span style=\"font-weight: 400;\">after the split, while the S&amp;P 500 was up only 1.5%. Netflix carried out a 1:7 <\/span><span style=\"font-weight: 400;\">split in July 2015. Six weeks later, the stock stood 15 % higher than before. <\/span><span style=\"font-weight: 400;\">Meanwhile, the market fell 6%. Nvidia\u2019s shares climbed as much as 20% <\/span><span style=\"font-weight: 400;\">after their split in July 2021.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Bank of America analysts found that stocks rose an average of 25.4% in the 12 <\/span><span style=\"font-weight: 400;\">months after a split was first announced. Amazon shares fell 25% after the <\/span><span style=\"font-weight: 400;\">announcement on 9 March. If the market environment remains friendly, Amazon could play out <\/span><span style=\"font-weight: 400;\">its post-split catch-up potential.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Closing price of the Amazon share is recalculated<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">After the end of US trading on Friday, 19 additional Amazon shares were booked into the <\/span><span style=\"font-weight: 400;\">securities account of every Amazon shareholder who owned a share at a certain point in time. <\/span><span style=\"font-weight: 400;\">Thus, Amazon shares ended Friday trading on the NASDAQ at 2,447 US dollars. This price is now divided by 20 and thus one Amazon share is worth 122.35 US dollars on a closing price basis.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Our DCF analysis indicates that the stock might be somewhat undervalued, however, peer <\/span><span style=\"font-weight: 400;\">analysis suggests that Amazon is overvalued compared to its peers. This divergence again speaks to the uncertainty in the market. With the current market cap between the DCF and peer analysis<\/span><span style=\"font-weight: 400;\">, we conclude that Amazon is likely fairly valued at present.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"lazyload alignnone size-full wp-image-10944\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271941%27%20height%3D%27651%27%20viewBox%3D%270%200%201941%20651%27%3E%3Crect%20width%3D%271941%27%20height%3D%27651%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"https:\/\/valutico.com\/wp-content\/uploads\/2022\/06\/amazon-val.png\" alt=\"\" width=\"1941\" height=\"651\" \/> <img decoding=\"async\" class=\"lazyload alignnone size-full wp-image-10949\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271918%27%20height%3D%27551%27%20viewBox%3D%270%200%201918%20551%27%3E%3Crect%20width%3D%271918%27%20height%3D%27551%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"https:\/\/valutico.com\/wp-content\/uploads\/2022\/06\/amazon-wacc.png\" alt=\"\" width=\"1918\" height=\"551\" \/> <img decoding=\"async\" class=\"lazyload alignnone size-full wp-image-10954\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27877%27%20height%3D%27496%27%20viewBox%3D%270%200%20877%20496%27%3E%3Crect%20width%3D%27877%27%20height%3D%27496%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"https:\/\/valutico.com\/wp-content\/uploads\/2022\/06\/amazon-speedo.png\" alt=\"\" width=\"877\" height=\"496\" \/><\/p>\n<p>Link to valuation: click <a href=\"https:\/\/valutico.com\/companies\/amazon-com-inc-c7ff08d7-41df-4691-be89-dd8e2aca729a\/evaluations\/VQ16VjpIIMgpWFW2l6jdFE5hyJYN9NtNoKdwMstL_Csdzru9Fh-dKGvI8zNJU-yoWYHBjRnFcpsc4qrv8xKCwg\/share\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon Inc. Weekly Valuation: Amazon Inc.\u00a0 &#8211; Valutico | 13 [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":21535,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Amazon: Valuation after 1:20 Stock Split - Valutico<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/valutico.com\/amazon-valuation-after-120-stock-split\/\" \/>\n<meta property=\"og:locale\" content=\"de_DE\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amazon: Valuation after 1:20 Stock Split - Valutico\" \/>\n<meta property=\"og:description\" content=\"Amazon Inc. 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