Amazon DCF Share Value

hi,what is the current discounted cashflow value per share of amazon?

As of November 13, 2023, the discounted cash flow (DCF) value per share for Amazon (AMZN) is approximately 148.85. This is compared to its current stock price of 143.56.

Remember, the DCF is a valuation method used to estimate the value of an investment based on its expected future cash flows. It's important to note that DCF values can vary based on the assumptions and methods used in the calculation. This figure should be used as part of a broader investment analysis.

interesting, analyze some key metrics of the company and orientate me about if it is overpriced or underpriced

Analyzing the key metrics of Amazon (AMZN), we can evaluate its current valuation and make an informed judgment about whether it is overpriced or underpriced. Here are some key metrics and their implications:

1. P/E Ratio (TTM): 73.80 - This is quite high, indicating that investors are willing to pay a premium for Amazon's earnings. A high P/E ratio can suggest optimism about future growth, but also raises concerns about overvaluation.

2. Price to Sales Ratio (TTM): 2.68 - This ratio is moderate, suggesting that the stock is not overly expensive in terms of its sales.

3. Price to Book Ratio (TTM): 8.10 - This is relatively high, indicating that the market values the company significantly more than its book value.

4. EV/EBITDA (TTM): 25.17 - This ratio is on the higher side, suggesting the company may be overvalued based on its earnings before interest, taxes, depreciation, and amortization.

5. Revenue Per Share (TTM): $53.67 - Reflects the amount of revenue generated per share, a useful metric to compare with the stock price.

6. Free Cash Flow Yield (TTM): 1.14% - This is relatively low, indicating that the company's free cash flow is a small proportion of its market cap, which might be a concern for investors looking for cash-generating investments.

7. Debt to Equity Ratio (TTM): 0.75 - This indicates a moderate level of debt compared to equity, which is typical for large companies like Amazon.

8. Current Ratio (TTM): 0.98 - Indicates that Amazon has almost equal assets and liabilities in the short term. This is a bit low for traditional comfort, but not unusual for large tech companies.

9. ROE (TTM): 12.32% - A reasonable return on equity, showing that Amazon is effectively generating profits from its equity.

10. Operating Cash Flow Per Share (TTM): $6.94 - Shows how much cash is generated from the company's operations relative to the number of shares.

Based on these metrics, Amazon appears to be a company with strong market dominance and potential for future growth, as indicated by its high P/E ratio. However, the high valuations in terms of P/B, EV/EBITDA, and P/E ratios suggest that the market may have priced in a lot of this growth potential already, leading to an overpriced perception.

It's important to consider these metrics in the context of Amazon's specific industry dynamics, growth prospects, and broader market conditions. Given the complexity of stock valuation, it's advisable to consult with a financial advisor or conduct thorough research before making any investment decisions. Remember, these metrics should be part of a comprehensive analysis, including qualitative factors such as market position, competitive advantages, and future growth prospects.