Amazon.com Inc.

AMZN ·Consumer Cyclical, Specialty Retail, United States

Fair Price / Book

Mainly for financial asset-heavy businesses (banks, insurers, etc). Not typically useful for non-financial companies.

Normalized ROE (%) Cost of Equity (%) Market Price ($)

Fair P/B —

Current Price / Book —

Formula: Fair P/B = Normalized ROE ÷ Cost of Equity

Mimicking the herd invites regression to the mean (merely average performance).