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General information
Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company products include books, music, videotapes, computers, electronics, home and garden, and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers.
  • Good financial results growth rate 38.2% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (41.5%)
  • Dividend yield for the last twelve months 0.0%
  • Free cash flow yield 0.7% (LTM)
  • Share price is 189.0% higher than minimum and 10.4% lower than maximum for the last 3 years
  • The company is undervalued by EV / LTM EBITDA multiple compared to target level (36.4x vs 43.2x)
  • Fundamental value created in LTM (estimate) 17.8%
Key Financials
Ticker: AMZN
Share price, USD: 3162.78
Common stocks: 495 797 220

Dividend Yield:  0.0%
FCF Yield LTM: 0.7%
EV / LTM EBITDA: 36.4x
Last revenue growth (y/y):  40.2%
Last growth of EBITDA (y/y):  36.1%
Historical revenue growth:  29.3%
Historical growth of EBITDA:  53.7%
Target EV / EBITDA (hist 75% percentile): 43.2x
Express share price potential: 32.0%
Fundamental value created in LTM: 17.8%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 1 568 098
Net Debt ($m): 19 280
EV (Enterprise Value): 1 587 378
EBITDA LTM ($m): 43 612
EV / LTM EBITDA: 36.4x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

Free Cash Flow ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends

Share price

Payment USD per share

Multiple and potential

EV / LTM EBITDA and 75% percentile

Potential dynamics

Value Creation

Fundamental Value Creation is calculated as ratio of value created in the last period to current market cap of the company.

The fundamental value can be created in two ways:
• cash generation in form of dividend payments or debt reduction or share buybacks
growth of the company enterprise value through improving financial results

The growth of enterprise value in the last period is estimated as product of:
• annualized increase of EBITDA in the last reporting period year over year
• relevant EV/EBITDA multiple (average between actual EV/EBITDA for the company and average general level of 10.0x is applied)

Parameter
#
Formula
Value
    
    
            EBITDA (pre LTM Q)
(1)
9 160
            EBITDA (last Q)
(2)
12 465
            EBITDA LTM
(3)
43 612
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
3.499
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
11 563
    
    
            EV
(6)
1 587 378
        Mult
(7)
(6) / (3)
36.4x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
23.2x
    
    
    Equity+
(10)
(5) * (9)
268 257
    FCF LTM
(11)
10 871
    
    
Value+
(12)
(10) + (11)
279 128
Cap
(13)
1 568 098
    
    
Fundamental value creation
(14)
(12) / (13)
17.8%

Potential

EBITDA LTM       43 612
 
EBITDA E       48 244
Mult aim       43.2x
 
EV E       2 085 878
NetDebt corr       15 676
 
Cap E       2 070 202
Cap       1 568 098
Growth potential            32.0%

Website traffic (visits bln/month) amazon.com

Three months progress: -2.7%