Amazon.com sells a range of products and services through its websites, including merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. The company also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, Echo and Fire phones. The company was founded in 1994 and is based in Seattle, Washington.
AMZN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Amazon Com Inc. To summarize, we found that Amazon Com Inc ranked in the 60th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 98.33%. The most interesting components of our discounted cash flow analysis for Amazon Com Inc ended up being:
As a business, AMZN is generating more cash flow than 97.15% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately just 14.35% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
AMZN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 44.49% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AMZN, try NTCT, CMTL, GVP, JCOM, and GENH.
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