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Problem Amazon Co, Inc (AMZN) has an Enterprise Value of $18.7 billion. AMZNs Enterprise Value to Sales ratio is 0.40 versus 1.65 for peers, while

Problem

Amazon Co, Inc (AMZN) has an Enterprise Value of $18.7 billion.

AMZNs Enterprise Value to Sales ratio is 0.40 versus 1.65 for peers, while their Enterprise Value to EBITDA ratio is 6.5 versus 15.7 for peers.

1: How would AMZNs Enterprise Value change if the ratios were equal to the average of its peers?

2: Is Amazon underpriced or overpriced compared to its peers?

Please provide accurate answers to both options with proper explanations.

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