Amazon.com Inc (NASDAQ:AMZN)
DCF Value
Estimated DCF Value of one
AMZN
stock under the base case scenario is
71.62
USD.
Compared to the current market price of 113.22 USD, the stock is
Overvalued by 37%.
Estimated DCF Value of one NASDAQ:AMZN stock is 71.62 USD. Compared to the current market price of 113.22 USD, the stock is Overvalued by 37% .
DCF valuation is one of two methods of placing a monetary value on a company; the other is Relative Valuation method. We use a combination of these two methods to calculate the Intrinsic Value of stock as accurately as possible.
You can change any inputs, such as future revenue, using Present Value Calculation block.
DCF Value Calculation
Capital Structure
From Present Value to DCF Value
| Present Value | 719B USD |
| + Cash & Equivalents | 36.4B USD |
| + Investments | 41.8B USD |
| Firm Value | 797B USD |
| - Debt | 68.4B USD |
| Equity Value | 729B USD |
| / Shares Outstanding | 10.2B |
| AMZN DCF Value | 71.62 USD |
To view the process of calculating the Present Value of Amazon.com Inc' future free cash flow, see the Present Value Calculation block.
Present Value Calculation
Discounted Cash Flow Model
Present Value of Free Cash Flow
To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.
DCF Model Financials
Financials used in the DCF Model
AMZN Stock DCF Valuation FAQ
Estimated DCF Value of one
AMZN
stock under the base case scenario is
71.62
USD.
Compared to the current market price of 113.22 USD, the stock is
Overvalued by 37%.
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 intrinsic values gives a complete picture of the investment risks and opportunities.
1. Present Value Calculation. Using the DCF Operating Model we project
Amazon.com Inc's future free cash flow and discount it at a selected discount rate to calculate its
Present Value (719B USD).
2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of
71.62 USD
per one
AMZN
share.
