Amazon being a multinational technology company that engages people in online retail shopping services can be valued or devalued by calculating its intrinsic value. The intrinsic value calculation of Amazon tells us about how most of its assets, revenue, and earnings are valued by investors. Since the profitable score of Amazon is 51 out of 100, it tells us about the positive gross profit, exceptional 3 years of revenue growth, positive average 3-year ROE, and positive revenue growth forecast. So, to calculate Amazon’s intrinsic value, the company uses the Discounted Cash Flow (DCF). This Discounted Cash Flow comprises two things which are the present Value (PV) and the Future Free Cash Flows (FCFs).
[su_note note_color=”#eaf8ff”]
Amazon Intrinsic Value 2023
The Intrinsic Value of Amazon.com Inc (AMZN) on 30-04-2023 is 132.12 USD.
Since the range of the intrinsic value is 93.38 – 225.59 USD, the current intrinsic value of Amazon lies in this range which shows that this company is having a good hold in the market and is valued by the investors. The intrinsic value of Amazon.com Inc is based on the Discounted Cash Flows (Growth Exit 5Y). Since the current market value of Amazon.com Inc is 105.45 USD, its upside is 25.3%. This intrinsic value of Amazon reflects the real worth for the month of march.
[table id=240 /]
[/su_note]
Calculating the intrinsic value of Amazon is not as easy as it seems. Amazon’s intrinsic value uses Amazon’s balance sheet items such as long-term debt, the book value of the preferred stock, minority interests, and other important financials.
The Amazon valuation model for evaluating the intrinsic value gives a unique way to know today’s worth of the company. This valuation model uses the quantitative analysis and fundamentals of the company to estimate the real value of the Amazon.com Inc.
Frequently Asked Questions
What influences the intrinsic value of Amazon?
The intrinsic value of Amazon is influenced by the cash flow value. It determines the intrinsic as well as underlying value of a company or stock.
What factors affect Amazon’s stock price?
Factors like the growth of the cloud business service, the growth of the online service sales, the distribution of its stocks, the innovation of its technology, video advances in social sciences, and there are many other factors that affect Amazon’s stock price.
What is the predictor for Amazon’s share price?
The analysts who are offering a 12-month price forecast for Amazon.com Inc have a median target of 132.00 with high and low estimates of 155.00 and 85.00
What is the highest Amazon stock has been?
Over the past 26 years of stock price history, the all-time high stock closing price of Amazon was on 8th July 2021 which was 186.
Amazon Stock Intrinsic Valuation
[toc]