Overview
This Amazon Case Study - Advanced Business Valuation Model is built to value AMZN's businesses and determine its target share price from the bottom up by following these steps:
- Calculate Amazon's Total Addressable Market (TAM) for each business segment, and determine the market share in each
- Use Amazon's actual financial statements (annual report, 10-K, 10-Q, etc) to build a historical 3-statement model
- Set up all the assumptions and drivers required to build out the DCF model
- Create a 10-year forecast for Amazon's business, including the three financial statements, supporting schedules, and free cash flow to the firm (FCFF)
- Look at Amazon-specific line items such as segmented revenue, stock-based compensation, and capital leases
- Perform advanced comparable company analysis (Comps) using Capital IQ and PitchBook Data
- Perform a Sum-Of-The-Parts (SOTP) valuation of Amazon
- Generate multiple operating scenarios to explore a range of outcomes and values for the business
- Compute AMZN's intrinsic value and IRR under each scenario
- Perform sensitivity analysis on key assumptions and assess the overall impact of the transaction
What this AMZN model includes:
- Raw data and historical analysis
- Market size and TAM
- Scenarios
- DCF assumptions
- Comps data
- WACC analysis
- Quarterly data and LTM data
- Summary dashboard
This model is very useful for advanced financial modelers who are looking to perform financial modeling and valuation using real-world company like Amazon which has a more complex business structure and operates in different business segments.
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This valuation model for Amazon is so detailed! Amazing work