Comprehensive evaluation of Amazon.com, Inc.: Fundamental analysis and valuation for investment decision making

Identifier:  TFG:7761

Handle: https://hdl.handle.net/20.500.11797/TFG7761

Authors:  Vicente Oliveira, Eduardo

Abstract:
This paper focuses on determining whether Amazon.com, Inc. is a good company and whether it is a viable investment at current market prices. Through a thorough analysis of the company's annual accounts for the period 2014-2023, its financial stability, growth and profitability are assessed. In addition, a detailed valuation is conducted using the Discounted Free Cash Flow (DCF) model to estimate Amazon's intrinsic value. The study compares this intrinsic value with its share price, allowing us to conclude whether the company is overvalued or undervalued. This paper provides a comprehensive view of Amazon as an investment option, integrating both its financial performance and its valuation in the context of the current market.