Amazon (Comparative Multiple Analysis)

Home Comparative Index Amazon

►Summary | Profile | News | Chart | SWOT | Cash Flow | Comps | Buffett | WACC

Link to services page Summary | Profile | SWOT | Cash Flow | Comps | Buffett | WACC Improve your investment analysis with by seeing the Amazon's Discounted Cash Flow analysis, Amazon's Warren Buffet analysis, and Amazon's Weighted Average Cost of Capital (WACC) Analysis. Notes on the Comparative Multiple Analysis of Amazon WikiWealth compares Amazon's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Amazon's comparative analysis. Notes from the analysis: 1. WikiWealth uses quantitative measures to determine the multiple range for Amazon. 2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Amazon's debt holders. 3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples. 4. WikiWealth excludes outliers when calculating individual company multiples. Helpful Information for Amazon's Analysis How does this work? The Comparative Investment Analysis determines the value of Amazon by comparing Amazon financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups. Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Amazon. See the Amazon cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Amazon. Also, see the Amazon's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Amazon's valuation conclusion for a quick summary.