Bill Miller doesn't see market as 'dramatically overvalued,' says Amazon could double in 3 years

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Bill Miller, founder of Miller Value Partners, disagreed Wednesday with the assessment made by other major investors about the market’s valuation being too high. 

“If you look at the overall market … we’re trading around 17 times the consensus on bottom-up earnings for 2021, which is about the average for the last five years,” Miller told CNBC’s “Closing Bell.” “It might be a little extended given we’ve got a chasm of bad news to go over here, but I don’t find is as dramatically overvalued” as others. 

Miller made his remarks after David Tepper, founder of Appaloosa Management, said earlier in the day that this market is the most overvalued he has seen since 1999. Stanley Druckenmiller, chairman and CEO of the Duquesne Family Office, said Tuesday that the “risk-reward for equity is maybe as bad as I’ve seen it in my career.”

The major averages fell sharply on Wednesday, with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all losing around 2%. However, they are still up sharply from the March 23 lows, in part because of strong gains from major tech-related stocks such as Amazon. 

Amazon is also Miller Value Partners’ largest holding, according to FactSet data. Miller noted Wednesday the stock could double in three years given the company’s efforts to “immunize” itself from future pandemic and strong position in cloud.  

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