1 Stat That Justifies Amazon's Huge P/E Ratio

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.

Amazon.com's P/E ratio is well over 100. Anand discusses why that is and gives one stat that bulls would use to justify the valuation.

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Anand Chokkavelu owns shares of Best Buy. The Motley Fool owns shares of Amazon.com, Best Buy and Wal-Mart Stores. Motley Fool newsletter services recommend Amazon.com and Wal-Mart Stores. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On February 12, 2012, at 8:47 PM, mrudolph72 wrote:

    I have an idea. If you're going to try to force videos on us at least let us know it's a video before we come to the page. Maybe beside the link you could add the word "video" in parenthesis or something. I know I'm not the only one that doesn't like them.

  • Report this Comment On February 12, 2012, at 10:18 PM, sliderw wrote:

    I agree with mrudolph72. Given the same article title, I am less inclined to watch it (if the article is video) than to read it (if the article is text).

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