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Amazon's EV/FCF ratio is approximately how many times the combined EV/
[#permalink]
30 Apr 2026, 22:49
30 Apr 2026, 22:49
Expert Reply
00:00
Question Stats:
75% (01:56) correct
25% (01:15) wrong based on 8 sessions
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The two scatter plots display the same 10 companies on two scales. The \(\mathrm{P} / \mathrm{E}\) ratio (x-axis) measures a stock's price relative to its earnings per share. The EV/FCF ratio (y-axis) measures enterprise value relative to free cash flow. The diagonal line marks where \(\mathrm{P} / \mathrm{E}= EV/FCF\); companies above the line have free cash flow lower than earnings, and companies below the line have free cash flow higher than earnings. All values are approximate.
Amazon's EV/FCF ratio is approximately how many times the combined EV/FCF of Meta and Apple?
- (A) 3.4
- (B) 4.7
- (C) 6.0
- (D) 7.2
- (E) 8.5
Amazon's EVFCF ratio is approximately.png [ 281.77 KiB | Viewed 810 times ]
Amazon's EV/FCF ratio is approximately how many times the combined EV/FCF of Meta and Apple?
- (A) 3.4
- (B) 4.7
- (C) 6.0
- (D) 7.2
- (E) 8.5
Show: ::
Attachment:
Amazon's EVFCF ratio is approximately.png [ 281.77 KiB | Viewed 810 times ]
Re: Amazon's EV/FCF ratio is approximately how many times the combined EV/
[#permalink]
04 May 2026, 04:00
04 May 2026, 04:00
Expert Reply
Step-by-step solution:
- Meta EV/FCF \(\approx 32\) (read from zoomed chart)
- Apple EV/FCF \(\approx 31\) (read from zoomed chart)
- Combined: \(32+31=63\)
- Amazon EV/FCF \(\approx 298\) (read from full chart)
- Ratio: \(298 \div 63 \approx 4.7\)
- Meta EV/FCF \(\approx 32\) (read from zoomed chart)
- Apple EV/FCF \(\approx 31\) (read from zoomed chart)
- Combined: \(32+31=63\)
- Amazon EV/FCF \(\approx 298\) (read from full chart)
- Ratio: \(298 \div 63 \approx 4.7\)
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