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:
We started the process of determining a valid price forecast for Amazon Com Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Amazon Com Inc ranked in the 50th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 4.33%. As for the metrics that stood out in our discounted cash flow analysis of Amazon Com Inc, consider:
As a business, AMZN is generating more cash flow than 96.97% 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 16.57% 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 3%; for context, that number is higher than 43.5% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Amazon Com Inc? See FISV, GDDY, CPSI, CIEN, and HQY.
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