Is Amazon the most overvalued stock/company right now?
Is has a market capitalization of $1 trillion dollars. But, it only made $230 billion in revenue last year, of which ONLY $10 billion was net income. $1 trillion divided by $10 billion = 100. It's trading at 100 times net income. Is that a lot for a stock?
Also, is there a known ratio that captures net income to market capitalization? Is this useful?