Books on Amazon.com for BUSSINES and INVESTING

Sunday, July 17, 2016

The shares, which are now not worth buying.

    The market is now at the peak value. S & P 500 broke through the level in 2160 and stopped on Friday at 2161.74. All these indicators bull market once again proved its "overheating". The analysis is based on value investing trend of shares:

     stock Amazon.com. NASDAQ:AMZN


     Key indicators are as follows:
 1) The share price - $ 735.44 
2) P / E ratio (price / earnings) - 302.74 !!! 
3) Ratio P / B (price / book value) - 23.5 !!!
     So analysis in value investing method. 
P / E rolls. 302.74 / 15 = 20.18 so many times P / E ratio higher than normal value for the investment. 
P / B to the same. If the carrying value of assets per share equal to $ 31.27, we have a market price of $ 735.44 per share. 
In all of this capital Profitability over the last 5 years it has decreased significantly, as can be seen from the following table:
  Conclusion: The method of cost analysis shows that the purchase of shares of Amazon.com so far it is very risky and threatens to huge losses in the event of a downturn in the stock markets.

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