Equity valuation : Amazon.com Inc.

• Autor(a) principal: Darcy, Laureline Garcia
• Data de Publicação: 2023
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/42612
• topic: Amazon; Share price; E-commerce; Equity valuation; Discounted cash flow; Relative valuation; Comércio online; Avaliação patrimonial; Fluxo de caixa descontado (DCF); Avaliação relativa; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This dissertation investigates the equity valuation of Amazon.com Inc., a global retailer of consumer goods and subscription services. The purpose of the valuation is to establish the fair value of Amazon's shares as of April 27, 2023, so that an investment recommendation can be made relative to the stock's current price. After analysing the most advanced equity valuation techniques, it was determined that the DCF valuation with perpetuity method was the most suitable method for valuing Amazon. In consideration of the diversity of Amazon's business divisions, a relative valuation technique known as sum-of-the-parts was added. The valuation is based on a thorough examination of the company's industry, environmental forces, past performance, and future prospects. The result is a target price of $126. This represents a 15.6% upside potential relative to the trading price of $109 on 27 April 2023, which corresponds to a BUY recommendation. Finally, the principal assumptions are compared to the Market Screener website's equity report and the market's consensus. The recommendations appear to be in accordance with the mean consensus despite differences in a few fundamental assumptions.