AWS Value Calculation Highlights Amazon's Cloud Business Uncertainty

Amazon's cloud business, Amazon Web Services (AWS), generated $42.2 billion in revenue and $16.6 billion in operating income during the second quarter of this year.

This translates to an approximately 39% operating margin for AWS.

To value AWS, analysts can apply hypothetical enterprise-value-to-operating-profit multiples of 20, 25, or 30, producing estimated values for the cloud business ranging from $1.33 trillion to $1.99 trillion.

Applying these multiples leaves approximately $1.49 trillion, $1.16 trillion, and $828 billion for Amazon's other businesses and corporate adjustments, including non-operating investment assets.