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Amazon.com Inc (NASDAQ:AMZN)

113.22 USD -3.24 USD ( -2.78% )
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Amazon.com Inc
NASDAQ:AMZN
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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.

Discount Rate
7.81%
Terminal Growth
0%
Growth Period
5 Years
Discount Rate
7.81%
Terminal Growth
0%
Growth Period
5 Years

You can change any inputs, such as future revenue, using Present Value Calculation block.

AMZN DCF Value
Base Case
71.62 USD
Overvaluation 37%
DCF Value
Price
Worst Case
Base Case
Best Case
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DCF Valuation
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Alibaba Health Information Technology Ltd
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Vipshop Holdings Ltd
MELI
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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
Overvalued by 37%

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

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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

Sensitivity Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Analyze the possible values of AMZN stock DCF Value given various model inputs such as Revenue Growth, Operating Margin, and Discount Rate.

See Also

Similar Stocks

AMZN Stock DCF Valuation FAQ

What is the DCF value of one AMZN stock?

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.

How was the DCF Value calculated?

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.