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Amazon.com , inc

Amazon.com , inc. Nick Romjue. The Catalog & mail order house industry Comparable companies. Market multiples. Simplest way to calculate value of a company by comparing it to similar companies Uses objective data Useful for comparing firms within an industry

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Amazon.com , inc

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  1. Amazon.com,inc Nick Romjue

  2. The Catalog & mail order house industry Comparable companies

  3. Market multiples • Simplest way to calculate value of a company by comparing it to similar companies • Uses objective data • Useful for comparing firms within an industry • Every investor has access to the data required to do this valuation

  4. Multiples used for valuation • Enterprise Profit After Tax • Net Enterprise Assets • Book value of equity (price-to-book) • Sales • Alexamultiple

  5. Epat multiple valuation Trading price as of 1/24/14: $387.60

  6. Epat valuation without barnes and noble Trading price as of 1/24/14: $387.60

  7. Nea multiple calculation Trading price as of 1/24/14: $387.60

  8. Nea without apple Trading price as of 1/24/14: $387.60

  9. Book value of equity multiple calculation Trading price as of 1/24/14: $387.60

  10. Sales multiple calculation Trading price as of 1/24/14: $387.60

  11. alexa • Web information company • Gives metrics comparing website traffic for US and International companies • Useful information: • US and International traffic ranks* • Audience demographics • Visitors by country • Related Sites * What we used for our evaluation

  12. Alexa multiple calculation Trading price as of 1/24/14: $387.60

  13. Average price from market multiples

  14. recommendation • Every multiple valuation indicated that Amazon stock should be sold • Two major caveats: • Multiple valuation is a flawed process in and of itself • The companies in our industry were not comparable. They each had drastically different numbers in every catagory • Based just on this evaluation, I would have to recommend selling • However, the caveats mentioned above give me almost zero confidence in my recommendation

  15. Questions?

  16. Sources • Amazon.comInc 10K for fiscal years 2010-2012 • Alexa.com

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