🛍️ AMAZON: FINANCIAL ANALYSIS 🛍️
#Amazon has performed poorly. It is difficult to value it with ratios such as ROIC [Return on Invested Capital] or EPS [Earnings Per Share] because its losses have destroyed it. In other cases, the market would have heavily penalized it, but being popular, it enjoys broad support.
The main reason for the distortion is their investment in #Rivian. In addition, the AWS (cloud) has decreased and its income has not been what was desired by the market consensus. Therefore, this time it will be valued by EV/EBITDA.
Currently, if we apply a multiple of 20x, the value would be ± $96.4 USD, for 25x of ± $120.8 USD and for 30X, of ± $147.3 USD. However, if we applied an EBITDA growth rate of 10%, a Net Debt of 5% and an increase of their shares outstanding in 0.4%, the spread of price will be set between ± $103.98 USD [20x] and ± $161.9 USD [30x], with a neutral price in ± $132.9 USD [25x].
The positive is that the Net Debt has been stable and the Revenues / EBITDA increased. The negative is that OPEX has erased some benefits, but, if the CAPEX is well managed, should normalize their metrics soon.
The best analysis is yours!
The main reason for the distortion is their investment in #Rivian. In addition, the AWS (cloud) has decreased and its income has not been what was desired by the market consensus. Therefore, this time it will be valued by EV/EBITDA.
Currently, if we apply a multiple of 20x, the value would be ± $96.4 USD, for 25x of ± $120.8 USD and for 30X, of ± $147.3 USD. However, if we applied an EBITDA growth rate of 10%, a Net Debt of 5% and an increase of their shares outstanding in 0.4%, the spread of price will be set between ± $103.98 USD [20x] and ± $161.9 USD [30x], with a neutral price in ± $132.9 USD [25x].
The positive is that the Net Debt has been stable and the Revenues / EBITDA increased. The negative is that OPEX has erased some benefits, but, if the CAPEX is well managed, should normalize their metrics soon.
The best analysis is yours!
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