Market Prospects:

Price Earnings Ratio:

The price earnings ratio of the business has improved in the year 2020 as compared to the year 2019 (higher ratio indicates higher growth). Market price per common share has also improved from $1,847 (2019) to $3,388 (2020), due to an increase in earnings per share from 23.46 (2019) to 42.64 (2020) and investors' expectations about the company's future earnings. The ratio has improved as the investors think that earnings will increase in future and therefore are willing to pay more for each share of common stock. It reflects the high-quality earnings of the business. The price earnings ratio of Amazon in 2019 is 78.77 whereas in 2020 it is 79.46. which clearly tells the increase of price earnings ratio in the current year 2020 compared to the previous year 2019. In the case of Walmart, it is only 20.24, extremely low as compared to Amazon.

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