First Time Loading...

Amazon.com Inc
NASDAQ:AMZN

Watchlist Manager
Amazon.com Inc Logo
Amazon.com Inc
NASDAQ:AMZN
Watchlist
Price: 180.7429 USD 0.51%
Updated: Mar 28, 2024

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Mar 28, 2024.

Estimated DCF Value of one AMZN stock is 97.016 USD. Compared to the current market price of 180.7429 USD, the stock is Overvalued by 46%.

AMZN DCF Value
Base Case
97.016 USD
Overvaluation 46%
DCF Value
Price
Worst Case
Base Case
Best Case
97.016
DCF Value
Worst Case
Base Case
Best Case
Hide
DCF Value: 97.016 USD

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 276.1B USD. The present value of the terminal value is 735.8B USD. The total present value equals 1T USD.
Forecast Period
Years
Discount Rate
%
Show All DCF Settings
Terminal Growth
%
Hide DCF Settings
Save

DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 1T USD
+ Cash & Equivalents 73.4B USD
+ Investments 19.1B USD
Firm Value 1.1T USD
- Debt 75B USD
Equity Value 1T USD
/ Shares Outstanding 10.6B
AMZN DCF Value 97.016 USD
Overvalued by 46%

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
654.1B 979.6B
Operating Income
55.8B 113B
FCFF
47.1B 85.8B

See Also

Discover More

What is the DCF value of one AMZN stock?

Estimated DCF Value of one AMZN stock is 97.016 USD. Compared to the current market price of 180.7429 USD, the stock is Overvalued by 46%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Amazon.com Inc's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 1T USD.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 97.016 USD per share.

//