5 U.S. Stocks With Operating Profit Multiples Greater Than 30x

Investors in the United States seem to place less emphasis on cash flow while focusing more on other valuations methodologies such as multiples. As evidence, companies such as Amazon and Expedia trade at 2-3x revenues, but choose to reinvest gross profits into new initiatives, thereby lowering its operating income quite substantially. In turn this brings companies, such as the ones on our list today, to a high Operating Income valuation multiple of above 30 times.

Amazon.com, Inc. (Amazon.com) is an e-commerce company that sells a range of products and services through its websites. The Company's products are offered through consumer-facing websites, which include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It designs its websites to enable products to be sold by the Company and by third parties across various product categories. It also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, Echo and Fire phones.

VMware, Inc. is a provider of virtualization infrastructure solutions. The Company develops and markets its product and service offerings within three product groups, which include software-defined data center (SDDC), hybrid cloud computing, and end-user computing (EUC). The Company's SDDC is designed to transform the data center into an on-demand service that addresses application requirements by abstracting, pooling and automating the services that are required from the underlying hardware.

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