1 / 16

Amazon.com , inc

Amazon.com , inc. Nick Romjue. overview. Disaggregate Return on Net Enterprise Assets Enterprise profit margin Enterprise asset turnover Parsimonious Forecast Industry Analysis Free Cash Flow Valuation. The Catalog & mail order house industry Comparable companies.

eliot
Télécharger la présentation

Amazon.com , inc

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Amazon.com,inc Nick Romjue

  2. overview • Disaggregate Return on Net Enterprise Assets • Enterprise profit margin • Enterprise asset turnover • Parsimonious Forecast • Industry Analysis • Free Cash Flow Valuation

  3. The Catalog & mail order house industry Comparable companies

  4. Amazon return on net enterprise assets

  5. Breaking apart rnea

  6. Sales growth Assume: 25%

  7. Epm (from sales) Assume: 1%

  8. eato Assume: 50

  9. Parsimonious assumptions • Sales growth rate: 25.00% • Enterprise profit margin: 1.00% • Enterprise asset turnover: 50

  10. Parsimonious forecast

  11. Industry analysis • The comparable companies were not helpful in this analysis • Outside of comparing sales growth to eBay, none of them had financial figures similar to Amazon • These companies may be in the same industry, but they are at different life cycle stages and are each managed differently

  12. Free cash flow FCF = EPAT – Increase in NEA

  13. Present value of fcf

  14. Present value of fcf with continuing value

  15. Questions?

  16. Sources • Amazon.comInc 10K for fiscal years 2010-2013

More Related