Amazon.com Inc (AMZN) is slightly undervalued and EBay Inc (EBAY) is overvalued.
Against our estimates of intrinsic value, AMZN trades at the wider discount: a margin of safety of +7%, against -78% for EBAY.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.9% (average of 3 methods) values the shares at $273.73; the price of $254.98 is 7% below that value, and 68% of that value comes from beyond year five.
Leak Score 46/100 on 10 of 12 signals
Discounting its cash flows at 10.8% (average of 3 methods) values the shares at $61.38; the price of $109.28 is 78% above that value, and 70% of that value comes from beyond year five.
Leak Score 41/100 on 9 of 12 signals
| Metric | AMZN | EBAY |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $254.98 | $109.28 |
| Intrinsic value | $273.73 | $61.38 |
| Margin of safety | +7% | -78% |
| Leak Score | 46/100 (10/12) | 41/100 (9/12) |
| Market cap | $2.75T | $48.6B |
| Revenue growth, 5 years | 13.2% | 4.6% |
| Operating margin | 12.7% | 21.4% |
| Net margin | 17.4% | 18.4% |
| Return on equity | 30.6% | 46.4% |
| Debt to equity | 0.44 | 1.53 |
| P/E | 20.5x | 22.6x |
| Forward P/E | 24.0x | 16.2x |
| P/B | 5.0x | 10.4x |
| Dividend yield | — | 1.1% |