Contents
Overview 3
History 3
Key Executives 6
Board of Directors 10
Industry Analysis 11
Recent News on the Company 12
Amazon Home Service News 12
“Amazon Destinations” News 13
The Faster the Better 13
Comparable Companies 14
eBay 14
Overstock.com 15
Netflix 16
Why We Chose These Comparables 17
Intrinsic Value Analysis 18
Method of Comparables 19
Calculations 19
Analysis 19
Asset Based Valuation Model 20
Analysis 20
Dividend Discount Model 22
Analysis 22
Discounted Cash Flow Model 26
Calculations 26
Analysis 27
Residual Earnings Model 29
Calculations 29
Analysis 29
Abnormal Earnings Growth Model 31
Calculations: 31
Analysis 31
Important Financial Ratios 32
DuPont Analysis 32
Amazon Calculations 32
32
Amazon Analysis 32
eBay Calculations 33
eBay Analysis 34
Overstock Calculations 34
Overstock Analysis 34
Netflix Calculations 35
Netflix Analysis 35
Conclusion 36
References 39
Appendix 41
Table 2. B 41
Table 2. B1 41
Table 2. C 42
Tables 2. D : 43
Tables 2. D1: 44
Calculation of Beta, Risk-free rate, and market rate 46
Table 2. E1 46
Table 2. E2 47
Table 2. E3 47
Table 2. E4a 47
Table 2. E4b 47
Table 2. F1 48
Table 2. F2a 48
Table 2. F2b 48
Company Description
Overview
Amazon was founded in 1994, headquartered out of Seattle, Washington. The company is the world’s largest online retailer operating internationally. It serves its customers through its retail websites, primarily through merchandise and content that is purchased for resale through vendors, or by third-party sellers. Amazon also offers services through Amazon Web Services, which provides compute, storage, database, analytics, applications and deployment services to a variety of businesses. In addition to its online retail and cloud services, it also manufactures and sells its own electronic devices, such as e-readers, tablets, smart TVs, and phones. Furthermore, Amazon has also created Amazon Prime, a membership program that...