Apple and Amazon are both flirting with one trillion dollar valuation. But that may not be the case if the company is Apple, with $285 billion dollars in annual sales, $88 billion in profits, and $71 billion in cash. At $1.09 trillion, Apple is valued roughly 3.80 times annual revenue, 12.40 times gross earnings, and fifteen times total cash--Table 1. At $970 billion, Amazon is valued at 4.66 times sales, 14.70 times gross earnings, and 35.92 times cash--Table 1. That’s why investors should be very cautious in placing more bets on Amazon at these valuation levels.

Source: Forbes September 16, 2018 12:56 UTC