Discounted Cash Flow (DCF) Analysis Levered

Amazon.com, Inc. (AMZN)

$142.69

+4.86 (+3.53%)
All numbers are in Millions, Currency in USD
Stock DCF: 81.54 | 142.69 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 177,866232,887280,522386,064469,822.01599,853.33765,873.06977,841.621,248,476.111,594,013.36
Revenue (%)
Operating Cash Flow 18,43430,72338,51466,06446,32777,091.1798,427.48125,668.98160,450.03204,857.34
Operating Cash Flow (%)
Capital Expenditure -11,955-13,427-16,861-40,140-61,053-50,255.17-64,164.16-81,922.69-104,596.20-133,545
Capital Expenditure (%)
Free Cash Flow 6,47917,29621,65325,924-14,72626,83634,263.3243,746.2955,853.8271,312.33

Weighted Average Cost Of Capital

Share price $ 142.69
Beta 1.330
Diluted Shares Outstanding 10,300
Cost of Debt
Tax Rate 12.55
After-tax Cost of Debt 1.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.063
Total Debt 116,395
Total Equity 1,469,707
Total Capital 1,586,102
Debt Weighting 7.34
Equity Weighting 92.66
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 177,866232,887280,522386,064469,822.01599,853.33765,873.06977,841.621,248,476.111,594,013.36
Operating Cash Flow 18,43430,72338,51466,06446,32777,091.1798,427.48125,668.98160,450.03204,857.34
Capital Expenditure -11,955-13,427-16,861-40,140-61,053-50,255.17-64,164.16-81,922.69-104,596.20-133,545
Free Cash Flow 6,47917,29621,65325,924-14,72626,83634,263.3243,746.2955,853.8271,312.33
WACC
PV LFCF 16,448.9919,356.2522,777.3626,803.1231,540.40
SUM PV LFCF 175,816.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.50
Free cash flow (t + 1) 72,738.58
Terminal Value 1,119,055.06
Present Value of Terminal Value 744,222.44

Intrinsic Value

Enterprise Value 920,039.19
Net Debt 80,175
Equity Value 839,864.19
Shares Outstanding 10,300
Equity Value Per Share 81.54