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Q1-In the consensus case, what is the exit multiple terminal value on Dec 31, 2028?

2,232,891

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1,605,714

1,853,611

2,151,659

Q-2  

In the consensus case, what is Amazon’s enterprise value on the valuation date using the exit multiple terminal value?

2,088,584

1,414,325

1,029,071

1,378,837 

Q3-  

What is the expected AMZN value per share in 2028 in the bear case using the exit multiple terminal valuation method?

5,038

4,892

3,570

7,721 

Q4-  

Calculate AMZN’s target share price using the consensus case assumptions and exit multiple terminal value, then perform a sensitivity analysis. What will the share price be if the exit multiple is 16.0x and the discount rate is 10.5%?

2,686

2,502

2,717

2,473 

Q5-  

What will the internal rate of return (IRR) be if the exit multiple is 10.0x and the purchase price per share is $1,700 in the bull case (given that the terminal value is calculated using the exit multiple method)?

13.5%

15.4%

13.8%

13.1%
 

_CIQHiddenCacheSheet

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Advanced Financial Modeling & Valuation
Qualified Assessment Question – DCF
Table of Content
Financial Model
Scenarios
Notes
This Excel model is provided “as is” and designed for educational purposes only and should not be used for any other reason.
CFI Education Inc. and its affiliates have no liability arising out of your use of this model.
The model is Copyright material of CFI Education Inc., all rights reserved.
https://corporatefinanceinstitute.com/
Disclaimer This model is intended solely for educational and training purposes. The information contained herein does not constitute investment advice, or an offer to sell, or the solicitation of any offer to buy any securities of Amazon.com, Inc. (NasdaqGS:AMZN) or any other security. This content in this model has not been approved or disapproved by (a) Amazon.com, Inc., (b) S&P Global Market Intelligence Inc., (c) Pitchbook Data, Inc., (d) Morningstar, Inc., (e) any equity research analyst that covers Amazon.com, Inc., or (f) any securities regulator in any province or territory of Canada, the United States Securities and Exchange Commission or any other United States federal or state regulatory authority, and no such commission or authority has passed upon the merits, accuracy or adequacy of this content, nor is it intended that any will. The information in this model does not constitute the provision of investment, tax, legal or other professional advice. As with all investments, there are associated risks and you could lose money investing – including, potentially, your entire investment. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. No reliance may be placed for any purpose on the information and opinions contained herein or their accuracy or completeness, and nothing contained herein may be relied upon in making any investment decision. This model is provided “as is”. CFI Education Inc. and its affiliates have no liability arising out of your use of this model.
https://corporatefinanceinstitute.com/

Financial Model

© Corporate Finance Institute. All rights reserved.EV:$0Share Price:$0
Historical Analysis
(in millions, except per share data)2013A2014A2015A2016A2017A20182019202020212022202320242025202620272028
Historical Analysis
Time Periods
BOP1/1/131/1/141/1/151/1/161/1/171/1/181/1/191/1/201/1/211/1/221/1/231/1/241/1/251/1/261/1/271/1/28
EOP12/31/1312/31/1412/31/1512/31/1612/31/1712/31/1812/31/1912/31/2012/31/2112/31/2212/31/2312/31/2412/31/2512/31/2612/31/2712/31/28
Days365365365366365365365366365365365366365365365366
Segmented Revenue Growth
Online Storesnana19.0%18.5%20.1%18.3%17.0%17.0%16.0%15.0%13.0%11.0%8.0%7.0%6.0%
Physical Storesnananana150.8%12.2%10.8%9.1%9.1%9.2%10.7%10.6%9.6%8.9%8.2%
Retail Third-Party Seller Servicesnana42.9%38.7%26.0%25.0%24.0%22.0%21.0%18.0%13.0%12.0%10.0%6.0%5.5%
Retail Subscription Servicesnana43.1%52.0%49.9%41.3%37.0%28.0%19.0%18.0%11.0%7.0%5.0%5.0%4.0%
AWSnana55.1%42.9%42.1%39.0%36.0%27.0%19.0%17.0%14.0%14.0%11.0%9.0%7.0%
Othernana72.5%57.7%135.0%80.0%50.0%40.0%37.0%24.0%13.0%9.0%9.0%8.0%5.0%
Total Net Sales19.5%20.2%27.1%30.8%32.2%25.5%23.7%21.5%19.2%16.8%12.9%11.0%8.7%7.1%5.9%
Expenses
Cost of Sales73%71%67%65%63%59.0%60.0%59.5%59.5%59.0%59.0%59.5%59.5%58.0%58.0%58.8%
Fulfillment12%12%13%13%14%16.8%15.7%15.5%15.5%15.6%15.7%15.8%15.8%15.8%15.8%15.8%
Marketing4%5%5%5%6%4.9%5.0%5.1%5.1%5.1%5.1%5.1%5.1%5.4%5.3%5.3%
Technology and Content9%10%12%12%13%11.7%11.8%11.9%11.9%11.9%11.5%11.5%11.5%11.5%11.3%11.0%
General and Administrative2%2%2%2%2%4.0%3.0%2.1%2.0%2.0%2.0%2.0%1.9%1.9%1.9%1.9%
Other Operating Expense, net0%0%0%0%0%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%
Total Operating Expenses99.0%99.8%97.9%96.9%97.7%96.6%95.7%94.3%94.2%93.8%93.5%94.1%94.0%92.8%92.5%93.0%
Stock-Based Compensation (SBC) (% of SG&A)5.8%5.7%6.4%6.8%6.8%6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%
Tax Rate31.8%0.0%60.6%36.6%20.2%20.0%20.0%22.5%22.5%22.5%22.5%22.5%22.5%22.5%22.5%22.5%
Interest Income Rate (Opening Balance)0.5%0.5%0.3%0.6%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Interest Expense Rate (Average Debt)3.7%5.6%6.1%5.2%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%
Balance Sheet
Inventory Days50485248526161616161616161616161
Accounts Receivable Days23232222272929292929292929292929
Change in Goodwill664440259,5661000002000000
Change in Other Assets49.8%16.6%40.0%88.4%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Change in Marketable Securities-24.5%37.0%69.7%57.4%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Accounts Payable Days10296104105113112112112112112112112112112112112
Accrued Expenses9.0%11.0%9.7%10.1%10.2%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%
Unearned Revenue1.6%2.0%2.9%3.5%2.9%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%
Cash Capex % of revenue4.6%5.5%5.0%5.7%6.7%6.8%6.8%6.8%6.8%6.8%6.2%6.2%6.2%5.0%4.0%4.0%
PP&E Acquired under Capital Leases5.3%5.0%4.8%7.1%4.4%4.8%4.4%5.0%5.5%5.5%5.5%5.5%4.2%3.0%3.0%
Depreciation % of PPE (Opening Balance)43.3%37.0%37.2%39.4%42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%
Repayment of Capital Leases (Opening Balance)47.8%41.0%44.2%42.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%
Change in Long-Term Debt5,074(30)(541)17,04900000000000
Change in Common Shares– 0– 0– 0– 000000000000
Change in Treasury Stock– 0– 0– 0– 000000000000
Change in Additional Paid-in Capital1,5622,2593,7924,20300000000000
Dividends00000000000
Proceeds from Property and Equipment Incentives00000000000
Acquisitions, net of Cash Acquired, and Other00000000000
Sales and Maturities of Marketable Securities00000000000
Change in Basic Shares Outstanding1.1%1.1%1.5%1.3%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Change in Diluted Shares Outstanding-0.6%3.2%1.5%1.9%1.5%1.5%1.2%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Income Statement
Segmented Revenue
Online Stores76,86391,431108,354130,133153,948180,119210,739244,457281,126317,672352,616380,825407,483431,9321P
Physical Stores5,79814,54116,31518,07719,72321,51723,49726,01128,76831,53034,33637,1521P
Retail Third-Party Seller Services16,08622,99331,88140,17050,21362,26475,96291,914108,458122,557137,264150,991160,050168,8533P
Retail Subscription Services4,4676,3949,72114,57220,59028,20836,10642,96750,70156,27860,21763,22866,39069,045Subs
AWS7,88012,21917,45924,80934,48546,89959,56270,87982,92894,538107,774119,629130,396139,523Cloud
Other1,7102,9504,65310,93519,68229,52341,33356,62670,21679,34486,48594,268101,810106,900Advertising
Total Net Sales74,45288,988107,006135,987177,866235,160295,232365,091443,424528,359616,925696,401773,124840,471900,464953,405
Income Statement
Net Product Sales60,90370,08079,26894,665118,573155,609189,945227,719271,794322,600374,838423,027467,869506,623543,629575,984
Net Service Sales13,54918,90827,73841,32259,29379,551105,287137,371171,630205,759242,087273,374305,255333,848356,835377,421
Total Net Sales74,45288,988107,006135,987177,866235,160295,232365,091443,424528,359616,925696,401773,124840,471900,464953,405
Operating Expenses:
Cost of Sales54,18162,75271,65188,265111,934138,744177,139217,229263,837311,732363,986414,358460,009487,473522,269560,602
Fulfillment8,58510,76613,41017,61925,24939,50746,35256,58968,73182,42496,857110,031122,154132,794142,273150,638
Marketing3,1334,3325,2547,23310,06911,52314,76218,62022,61526,94631,46335,51639,42945,38547,72550,530
Technology and Content6,5659,27512,54016,08522,62027,51434,83743,44652,76762,87570,94680,08688,90996,654101,752104,875
General and Administrative1,1291,5521,7472,4323,6749,4068,8577,5418,86810,56712,33913,92814,68915,96917,10918,115
Other Operating Expense, net1141331711672144705907308871,0571,2341,3931,5461,6811,8011,907
Total Operating Expenses73,70788,810104,773131,801173,760227,165282,537344,155417,706495,601576,825655,313726,737779,957832,929886,667
Operating Income7451782,2334,1864,1067,99512,69520,93625,71932,75840,10041,08846,38760,51467,53566,738
Interest Income3839501002022053325227761,0811,4551,9422,4412,9883,7394,626
Interest Expense(141)(210)(459)(484)(848)(1,732)(1,732)(1,732)(1,732)(1,732)(1,732)(1,732)(1,732)(1,732)(1,732)(1,732)
Other Income (Expense), net(136)(118)(256)90346
Total Non-Operating Income (Expense)(239)(289)(665)(294)(300)(1,527)(1,400)(1,210)(956)(651)(277)2107081,2562,0072,894
Income Before Income Taxes506(111)1,5683,8923,8066,46911,29519,72624,76232,10839,82341,29847,09661,77069,54269,633
Provision for Income Taxes(161)(167)(950)(1,425)(769)(1,294)(2,259)(4,438)(5,572)(7,224)(8,960)(9,292)(10,597)(13,898)(15,647)(15,667)
Equity-Method Investment Activity, net of tax(71)37(22)(96)(4)
Net Income274(241)5962,3713,0335,1759,03615,28819,19124,88330,86332,00636,49947,87253,89553,965
Basic Earnings per Share0.60(0.52)1.285.006.3210.6718.4530.9138.4249.3260.5762.1970.2291.19101.65100.77
Diluted Earnings per Share0.59(0.52)1.254.906.1510.3417.7929.7436.9747.4658.2859.8467.5687.7497.8096.96
Weighted-Average Shares used in Computation of Earnings per Share:
Basic457462467474480485490495499504510515520525530536
Diluted465462477484493500508514519524530535540546551557
Balance Sheet
Current Assets:
Cash and Cash Equivalents8,65814,55715,89019,33420,52233,21752,23977,564108,134145,490194,209244,051298,801373,878462,618547,607
Marketable Securities3,7892,8593,9186,64710,46410,46410,46410,46410,46410,46410,46410,46410,46410,46410,46410,464
Inventories7,4118,29910,24311,46116,04723,18729,60436,20544,09352,09860,83169,06076,87881,46887,28393,434
Accounts Receivable, net and other4,7675,6126,4238,33913,16418,68423,45728,92835,23141,97949,01655,17961,42666,77771,54475,543
Total Current Assets24,62531,32736,47445,78160,19785,553115,764153,161197,922250,031314,519378,754447,569532,588631,909727,048
Property And Equipment, net10,94916,96721,83829,11448,86654,68065,96179,14898,230121,961142,918164,371185,791185,082170,380165,559
Goodwill2,6553,3193,7593,78413,35013,36013,36013,36013,36013,36013,38013,38013,38013,38013,38013,380
Other Assets1,9302,8923,3734,7238,8978,8978,8978,8978,8978,8978,8978,8978,8978,8978,8978,897
Total Assets40,15954,50565,44483,402131,310162,490203,982254,566318,409394,249479,714565,402655,637739,947824,566914,883
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable15,13316,45920,39725,30934,61642,57454,35566,47480,95895,655111,689126,798141,153149,581160,258171,550
Accrued Expenses and Other6,6889,80710,38413,73918,17023,51629,52336,50944,34252,83661,69369,64077,31284,04790,04695,341
Unearned Revenue1,1591,8233,1184,7685,0979,40611,80914,60417,73721,13424,67727,85630,92533,61936,01938,136
Total Current Liabilities22,98028,08933,89943,81657,88375,49695,688117,587143,038169,625198,058224,294249,391267,247286,323305,027
Long-Term Debt3,1918,2658,2357,69424,74324,74324,74324,74324,74324,74324,74324,74324,74324,74324,74324,743
Other Long-Term Liabilities4,2427,4109,92612,60720,97523,62029,03334,18043,38055,79868,13279,91691,21890,78982,24578,698
Total Liabilities30,41343,76452,06064,117103,601123,859149,464176,510211,161250,166290,934328,953365,352382,779393,311408,468
Stockholders’ Equity:
Common Shares – 477 and 4845555555555555555
Treasury Stock, at Cost(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)(1,837)
Additional Paid-In Capital9,57311,13513,39417,18621,38927,13633,98742,23752,23964,19078,02593,687111,024130,036150,229171,423
Accumulated Other Comprehensive Loss(185)(511)(723)(985)(484)(484)(484)(484)(484)(484)(484)(484)(484)(484)(484)(484)
Retained Earnings2,1901,9492,5454,9168,63613,81122,84738,13557,32682,209113,072145,078181,577229,449283,343337,309
Total Stockholders’ Equity9,74610,74113,38419,28527,70938,63154,51878,056107,248144,083188,781236,448290,285357,168431,256506,415
Total Liabilities and Stockholders’ Equity40,15954,50565,44483,402131,310162,490203,982254,566318,409394,249479,714565,402655,637739,947824,566914,883
Check0.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.000
Cash Flow Statement
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD8,0848,65814,55715,89019,33420,52233,21752,23977,564108,134145,490194,209244,051298,801373,878462,618
OPERATING ACTIVITIES:
Net Income274(241)5962,3713,0335,1759,03615,28819,19124,88330,86332,00636,49947,87253,89553,965
Adjustments to Reconcile Net Income to Net Cash from Operating Activities:
Depreciation of Property and Equipment3,2534,7466,2818,11611,47820,52422,96627,70433,24241,25751,22460,02669,03678,03277,73471,560
Stock-Based Compensation1,1341,4972,1192,9754,2155,7476,8518,25010,00111,95113,83515,66217,33719,01120,19321,194
Other Non-Cash Operating Expense, net
Corporate Finance Institute® (CFI): Corporate Finance Institute® (CFI): Forecast period is change in goodwill only
123(128)486(106)(119)(10)0000(20)00000
Changes in Operating Assets and Liabilities:
Inventories(1,410)(1,193)(2,187)(1,426)(3,583)(7,140)(6,417)(6,601)(7,889)(8,004)(8,733)(8,229)(7,818)(4,590)(5,815)(6,150)
Accounts Receivable, net and other(846)(1,039)(1,755)(3,367)(4,786)(5,520)(4,773)(5,471)(6,303)(6,748)(7,037)(6,163)(6,247)(5,351)(4,767)(3,999)
Accounts Payable1,8881,7594,2945,0307,1757,95811,78112,11914,48414,69616,03415,10914,3558,42710,67711,292
Accrued Expenses and Other7367069131,7242835,3466,0076,9867,8338,4948,8577,9487,6726,7355,9995,294
Unearned Revenue4017411,2921,9557384,3092,4032,7943,1333,3973,5433,1793,0692,6942,4002,118
Net Cash Provided by (used in) Operating Activities5,5536,84812,03917,27218,43436,38947,85561,06973,69389,926108,565119,537133,904152,831160,316155,274
INVESTING ACTIVITIES:
Purchases of Property and Equipment, Including Internal-Use Software and Website Development(3,444)(4,893)(5,387)(7,804)(11,955)(15,991)(20,076)(24,826)(30,153)(35,928)(38,249)(43,177)(47,934)(42,024)(36,019)(38,136)
Proceeds from Property and Equipment Incentives7981,0671,897
Acquisitions, net of cash acquired, and other(312)(979)(795)(116)(13,972)00000000000
Sales (Purchases) of Marketable Securities, net(520)807(1,066)(3,023)(3,789)00000000000
Net Cash Provided by (used in) Investing Activities(4,276)(5,065)(6,450)(9,876)(27,819)(15,991)(20,076)(24,826)(30,153)(35,928)(38,249)(43,177)(47,934)(42,024)(36,019)(38,136)
FINANCING ACTIVITIES:
Proceeds (Repayments) from Long-Term Debt and Other1635,846(1,299)26714,85900000000000
Principal Repayments of Capital Lease Obligations(775)(1,285)(2,462)(3,860)(4,799)(7,702)(8,758)(10,918)(12,971)(16,642)(21,597)(26,518)(31,220)(35,729)(35,558)(32,149)
Principal Repayments of Finance Lease Obligations(5)(135)(121)(147)(200)
Proceeds from Issuing Equity (Common, Treasury, Paid-in, etc)0000000000000000
Payment of Dividends0000000000000000
Net Cash Provided by (used in) Financing Activities(617)4,426(3,882)(3,740)9,860(7,702)(8,758)(10,918)(12,971)(16,642)(21,597)(26,518)(31,220)(35,729)(35,558)(32,149)
Foreign Currency Effect on Cash and Cash Equivalents(86)(310)(374)(212)713
Net Increase (Decrease) in Cash and Cash Equivalents5745,8991,3333,4441,18812,69519,02125,32630,56937,35648,71949,84254,75075,07888,74084,989
CASH AND CASH EQUIVALENTS, END OF PERIOD8,65814,55715,89019,33420,52233,21752,23977,564108,134145,490194,209244,051298,801373,878462,618547,607
Supporting Schedules
PP&E Schedule
Opening Balance10,94916,96721,83829,11448,86654,68065,96179,14898,230121,961142,918164,371185,791185,082170,380
Less: Depreciation(4,746)(6,281)(8,116)(11,478)(20,524)(22,966)(27,704)(33,242)(41,257)(51,224)(60,026)(69,036)(78,032)(77,734)(71,560)
Plus: Capex4,8934,5896,73710,05815,99120,07624,82630,15335,92838,24943,17747,93442,02436,01938,136
Plus: PP&E Acquired Under Capital/Financing Leases4,7515,3536,59312,64310,34714,17116,06422,17129,06033,93138,30242,52235,30027,01428,602
Plus: Other Net Additions1,1201,2102,0628,52900000000000
Closing Balance10,94916,96721,83829,11448,86654,68065,96179,14898,230121,961142,918164,371185,791185,082170,380165,559
PP&E on Balance Sheet10,94916,96721,83829,11448,86654,68065,96179,14898,230121,961142,918164,371185,791185,082170,380165,559
Debt Schedule
Opening Balance3,1918,2658,2357,69424,74324,74324,74324,74324,74324,74324,74324,74324,74324,74324,743
Plus: Additions (repayments), net5,074(30)(541)17,04900000000000
Closing Balance3,1918,2658,2357,69424,74324,74324,74324,74324,74324,74324,74324,74324,74324,74324,74324,743
Long-Term Debt on Balance Sheet3,1918,2658,2357,69424,74324,74324,74324,74324,74324,74324,74324,74324,74324,74324,74324,743
Interest Expense1412104594848481,7321,7321,7321,7321,7321,7321,7321,7321,7321,7321,732
Interest Rate3.7%5.6%6.1%5.2%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%
Capital Leases Schedule
Opening Balance (Total)1,3012,9736,3049,07411,66019,30421,94927,36232,50941,70954,12766,46178,24589,54789,11880,574
Less: Principal Repayments(780)(1,420)(2,583)(4,007)(4,999)(7,702)(8,758)(10,918)(12,971)(16,642)(21,597)(26,518)(31,220)(35,729)(35,558)(32,149)
Plus: Net Additions2,4524,7515,3536,59312,64310,34714,17116,06422,17129,06033,93138,30242,52235,30027,01428,602
Closing Balance (Total)2,9736,3049,07411,66019,30421,94927,36232,50941,70954,12766,46178,24589,54789,11880,57477,027
Annual Report Closing Figure2,9736,3049,07411,66019,304
Valuation
Free Cash Flow (FCF) From Operations
Net Cash Provided by (used in) Operating Activities5,5536,84812,03917,27218,43436,38947,85561,06973,69389,926108,565119,537133,904152,831160,316155,274
Purchases of Property and Equipment(3,444)(4,893)(4,589)(6,737)(10,058)(15,991)(20,076)(24,826)(30,153)(35,928)(38,249)(43,177)(47,934)(42,024)(36,019)(38,136)
Free Cash Flow2,1091,9557,45010,5358,37620,39827,77936,24343,54053,99870,31676,36085,970110,807124,298117,137
Property and Equipment Acquired Under Capital Leases(2,452)(4,751)(5,353)(6,593)(12,643)(10,347)(14,171)(16,064)(22,171)(29,060)(33,931)(38,302)(42,522)(35,300)(27,014)(28,602)
Free Cash Flow Less Capital Leases(343)(2,796)2,0973,942(4,267)10,05113,60820,17921,36924,93836,38538,05843,44875,50797,28488,535
EBIT7451782,2334,1864,1067,99512,69520,93625,71932,75840,10041,08846,38760,51467,53566,738
D&A3,2534,7466,2818,11611,47820,52422,96627,70433,24241,25751,22460,02669,03678,03277,73471,560
EBITDA (Including SBC)3,9984,9248,51412,30215,58428,51935,66148,64058,96174,01591,324101,113115,423138,546145,269138,298
Stock-Based Compensation (SBC)1,1341,4972,1192,9754,2155,7476,8518,25010,00111,95113,83515,66217,33719,01120,19321,194
EBITDA (Excluding SBC)5,1326,42110,63315,27719,79934,26642,51256,89068,96285,966105,159116,775132,761157,558165,462159,492
Free Cash Flow to Firm (FCFF)
Operating Profit7451782,2334,1864,1067,99512,69520,93625,71932,75840,10041,08846,38760,51467,53566,738
Less: Unlevered Taxes(237)0(1,353)(1,533)(830)(1,599)(2,539)(4,711)(5,787)(7,371)(9,023)(9,245)(10,437)(13,616)(15,195)(15,016)
Net Operating Profit After Tax (NOPAT)5081788802,6533,2766,39610,15616,22519,93225,38831,07831,84335,95046,89852,33951,722
Plus: Depreciation & Amortization3,2534,7466,2818,11611,47820,52422,96627,70433,24241,25751,22460,02669,03678,03277,73471,560
Plus: Stock-Based Compensation1,1341,4972,1192,9754,2155,7476,8518,25010,00111,95113,83515,66217,33719,01120,19321,194
Plus: Other Non-Cash Expenses123(128)486(106)(119)(10)0000(20)00000
Less: Cash Capex(3,444)(4,893)(4,589)(6,737)(10,058)(15,991)(20,076)(24,826)(30,153)(35,928)(38,249)(43,177)(47,934)(42,024)(36,019)(38,136)
Plus: Changes in Net Working Capital7699742,5573,916(173)4,9539,0029,82811,25911,83512,66411,84311,0317,9158,4948,555
Free Cash Flow to Firm (FCFF)2,3432,3747,73410,8178,61921,61928,89937,18144,28254,50270,53076,19785,421109,834122,743114,894
Less: Capital Lease Additions(2,452)(4,751)(5,353)(6,593)(12,643)(10,347)(14,171)(16,064)(22,171)(29,060)(33,931)(38,302)(42,522)(35,300)(27,014)(28,602)
Free Cash Flow to Firm (FCFF) If All Cash Capex(109)(2,377)2,3814,224(4,024)11,27214,72821,11722,11025,44236,59937,89542,89974,53495,72986,292
Discounted Cash Flow (DCF) Analysis
ModelExit MultipleGrowth Rate
Terminal Value (Choose Option –>)Exit Multiple14.0x3.0%
Terminal Value in Model
Discount Rate8.5%
Valuation Date11/9/18
# Shares Outstanding as of Valuation Date (millions)520
Market Price as of Valuation Date$1,800
Valuation DateTerminal Value
Valuation Timeline11/09/1812/31/1812/31/1912/31/2012/31/2112/31/2212/31/2312/31/2412/31/2512/31/2612/31/2712/31/2812/31/28
Year Frac0.141.001.001.001.001.001.001.001.001.001.001.00
Free Cash Flow to Firm (FCFF)0
Rolling Enterprise Value (NPV)
Plus: Cash + Marketable Securities29,765
Less: Debt + Capital & Finance Leases(47,219)
Equity Value
Fully Diluted Shares Outstanding
Rolling AMZN Value per Share
Investor IRR
Equity Investor Return (After SBC dilution)
Equity Investor IRR (After SBC dilution)
Instrinsic Value ($/share)Internal Rate of Return (IRR)
Discount RatePurchase Price (per share)
$010.5%9.5%8.5%7.5%6.5%0.0%$2,000$1,900$1,800$1,700$1,600
Exit Multiple10.0xExit Multiple10.0x
12.0x12.0x
14.0x14.0x
16.0x16.0x
18.0x18.0x

Scenarios

© Corporate Finance Institute. All rights reserved.EV:$0Share Price:$0
Historical Analysis
(in millions, except per share data)2013A2014A2015A2016A2017A20182019202020212022202320242025202620272028
Historical Analysis
Time Periods
BOP1/1/131/1/141/1/151/1/161/1/171/1/181/1/191/1/201/1/211/1/221/1/231/1/241/1/251/1/261/1/271/1/28
EOP12/31/1312/31/1412/31/1512/31/1612/31/1712/31/1812/31/1912/31/2012/31/2112/31/2212/31/2312/31/2412/31/2512/31/2612/31/2712/31/28
Days365365365366365365365366365365365366365365365366
Case Selection
NameDescriptionNumberLive Case ->
Consensus1Number1
Bull2NPV $/Sh$0
Bear3
Other4
LIVE CASE
Segmented Revenue Growth
Online Stores20.1%18.3%17.0%17.0%16.0%15.0%13.0%11.0%8.0%7.0%6.0%
Physical Stores150.8%12.2%10.8%9.1%9.1%9.2%10.7%10.6%9.6%8.9%8.2%
Retail Third-Party Seller Services26.0%25.0%24.0%22.0%21.0%18.0%13.0%12.0%10.0%6.0%5.5%
Retail Subscription Services49.9%41.3%37.0%28.0%19.0%18.0%11.0%7.0%5.0%5.0%4.0%
AWS42.1%39.0%36.0%27.0%19.0%17.0%14.0%14.0%11.0%9.0%7.0%
Other135.0%80.0%50.0%40.0%37.0%24.0%13.0%9.0%9.0%8.0%5.0%
Total Net Sales
Expenses
Cost of Sales59.0%60.0%59.5%59.5%59.0%59.0%59.5%59.5%58.0%58.0%58.8%
Fulfillment16.8%15.7%15.5%15.5%15.6%15.7%15.8%15.8%15.8%15.8%15.8%
Marketing4.9%5.0%5.1%5.1%5.1%5.1%5.1%5.1%5.4%5.3%5.3%
Technology and Content11.7%11.8%11.9%11.9%11.9%11.5%11.5%11.5%11.5%11.3%11.0%
General and Administrative4.0%3.0%2.1%2.0%2.0%2.0%2.0%1.9%1.9%1.9%1.9%
Other Operating Expense, net0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%
Total Operating Expenses96.6%95.7%94.3%94.2%93.8%93.5%94.1%94.0%92.8%92.5%93.0%
Stock-Based Compensation (SBC) (% of SG&A)6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%
Tax Rate20.0%20.0%22.5%22.5%22.5%22.5%22.5%22.5%22.5%22.5%22.5%
Interest Income Rate (Opening Balance)1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Interest Expense Rate (Average Debt)7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%
Balance Sheet
Inventory Days6161616161616161616161
Accounts Receivable Days2929292929292929292929
Change in Goodwill1000002000000
Change in Other Assets0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Change in Marketable Securities0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Accounts Payable Days112112112112112112112112112112112
Accrued Expenses10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%
Unearned Revenue4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%
Cash Capex % of revenue6.8%6.8%6.8%6.8%6.8%6.2%6.2%6.2%5.0%4.0%4.0%
PP&E Acquired under Capital Leases4.4%4.8%4.4%5.0%5.5%5.5%5.5%5.5%4.2%3.0%3.0%
Depreciation % of PPE (Opening Balance)42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%
Repayment of Capital Leases (Opening Balance)39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%
Change in Long-Term Debt00000000000
Change in Common Shares00000000000
Change in Treasury Stock00000000000
Change in Additional Paid-in Capital00000000000
Dividends00000000000
Proceeds from Property and Equipment Incentives00000000000
Acquisitions, net of Cash Acquired, and Other00000000000
Sales and Maturities of Marketable Securities00000000000
Change in Basic Shares Outstanding1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Change in Diluted Shares Outstanding1.5%1.5%1.2%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
CONSENSUS CASE
Segmented Revenue Growth
Online Stores20.1%18.3%17.0%17.0%16.0%15.0%13.0%11.0%8.0%7.0%6.0%
Physical Stores150.8%12.2%10.8%9.1%9.1%9.2%10.7%10.6%9.6%8.9%8.2%
Retail Third-Party Seller Services26.0%25.0%24.0%22.0%21.0%18.0%13.0%12.0%10.0%6.0%5.5%
Retail Subscription Services49.9%41.3%37.0%28.0%19.0%18.0%11.0%7.0%5.0%5.0%4.0%
AWS42.1%39.0%36.0%27.0%19.0%17.0%14.0%14.0%11.0%9.0%7.0%
Other135.0%80.0%50.0%40.0%37.0%24.0%13.0%9.0%9.0%8.0%5.0%
Total Net Sales
Expenses
Cost of Sales59.0%60.0%59.5%59.5%59.0%59.0%59.5%59.5%58.0%58.0%58.8%
Fulfillment16.8%15.7%15.5%15.5%15.6%15.7%15.8%15.8%15.8%15.8%15.8%
Marketing4.9%5.0%5.1%5.1%5.1%5.1%5.1%5.1%5.4%5.3%5.3%
Technology and Content11.7%11.8%11.9%11.9%11.9%11.5%11.5%11.5%11.5%11.3%11.0%
General and Administrative4.0%3.0%2.1%2.0%2.0%2.0%2.0%1.9%1.9%1.9%1.9%
Other Operating Expense, net0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%
Total Operating Expenses96.6%95.7%94.3%94.2%93.8%93.5%94.1%94.0%92.8%92.5%93.0%
Stock-Based Compensation (SBC) (% of SG&A)6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%6.5%
Tax Rate20.0%20.0%22.5%22.5%22.5%22.5%22.5%22.5%22.5%22.5%22.5%
Interest Income Rate (Opening Balance)1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Interest Expense Rate (Average Debt)7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%
Balance Sheet
Inventory Days6161616161616161616161
Accounts Receivable Days2929292929292929292929
Change in Goodwill1000002000000
Change in Other Assets0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Change in Marketable Securities0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Accounts Payable Days112112112112112112112112112112112
Accrued Expenses10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%
Unearned Revenue4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%
Cash Capex % of revenue6.8%6.8%6.8%6.8%6.8%6.2%6.2%6.2%5.0%4.0%4.0%
PP&E Acquired under Capital Leases4.4%4.8%4.4%5.0%5.5%5.5%5.5%5.5%4.2%3.0%3.0%
Depreciation % of PPE (Opening Balance)42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%42.0%
Repayment of Capital Leases (Opening Balance)39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%39.9%
Change in Long-Term Debt00000000000
Change in Common Shares00000000000
Change in Treasury Stock00000000000
Change in Additional Paid-in Capital00000000000
Dividends00000000000
Proceeds from Property and Equipment Incentives00000000000
Acquisitions, net of Cash Acquired, and Other00000000000
Sales and Maturities of Marketable Securities00000000000
Change in Basic Shares Outstanding1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Change in Diluted Shares Outstanding1.5%1.5%1.2%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
BULL CASE
Segmented Revenue Growth
Online Stores23.1%21.0%19.6%19.6%18.4%17.3%15.0%12.7%9.2%8.1%6.9%
Physical Stores173.4%14.0%12.4%10.5%10.5%10.6%12.3%12.2%11.0%10.2%9.4%
Retail Third-Party Seller Services29.9%28.8%27.6%25.3%24.2%20.7%15.0%13.8%11.5%6.9%6.3%
Retail Subscription Services57.4%47.5%42.6%32.2%21.9%20.7%12.7%8.1%5.8%5.8%4.6%
AWS48.4%44.9%41.4%31.1%21.9%19.6%16.1%16.1%12.7%10.4%8.1%
Other155.3%92.0%57.5%46.0%42.6%27.6%15.0%10.4%10.4%9.2%5.8%
Total Net Sales
Expenses
Cost of Sales57.2%58.2%57.7%57.7%57.2%57.2%57.7%57.7%56.3%56.3%57.0%
Fulfillment16.3%15.2%15.0%15.0%15.1%15.2%15.3%15.3%15.3%15.3%15.3%
Marketing4.8%4.9%4.9%4.9%4.9%4.9%4.9%4.9%5.2%5.1%5.1%
Technology and Content11.3%11.4%11.5%11.5%11.5%11.2%11.2%11.2%11.2%11.0%10.7%
General and Administrative3.9%2.9%2.0%1.9%1.9%1.9%1.9%1.8%1.8%1.8%1.8%
Other Operating Expense, net0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%
Total Operating Expenses93.7%92.8%91.4%91.4%91.0%90.7%91.3%91.2%90.0%89.7%90.2%
Stock-Based Compensation (SBC) (% of SG&A)6.7%6.7%6.7%6.7%6.7%6.7%6.7%6.7%6.7%6.7%6.7%
Tax Rate20.0%20.0%22.5%22.5%22.5%22.5%22.5%22.5%22.5%22.5%22.5%
Interest Income Rate (Opening Balance)1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Interest Expense Rate (Average Debt)7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%
Balance Sheet
Inventory Days5050505050505050505050
Accounts Receivable Days2424242424242424242424
Change in Goodwill00000000000
Change in Other Assets0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Change in Marketable Securities0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Accounts Payable Days113113113113113113113113113113113
Accrued Expenses9.5%9.5%9.5%9.5%9.5%9.5%9.5%9.5%9.5%9.5%9.5%
Unearned Revenue2.7%2.7%2.7%2.7%2.7%2.7%2.7%2.7%2.7%2.7%2.7%
Cash Capex % of revenue7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%
PP&E Acquired under Capital Leases7.5%6.0%5.0%5.0%5.0%4.0%4.0%4.0%3.0%2.9%2.9%
Depreciation % of PPE (Opening Balance)40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%
Repayment of Capital Leases (Opening Balance)38.0%38.0%38.0%38.0%38.0%38.0%38.0%38.0%38.0%38.0%38.0%
Change in Long-Term Debt00000000000
Change in Common Shares00000000000
Change in Treasury Stock00000000000
Change in Additional Paid-in Capital00000000000
Dividends00000000000
Proceeds from Property and Equipment Incentives00000000000
Acquisitions, net of Cash Acquired, and Other00000000000
Sales and Maturities of Marketable Securities00000000000
Change in Basic Shares Outstanding1.2%1.1%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Change in Diluted Shares Outstanding1.6%1.3%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
BEAR CASE
Segmented Revenue Growth
Online Stores18.9%17.2%16.0%16.0%15.0%14.1%12.2%10.3%7.5%6.6%5.6%
Physical Stores141.8%11.5%10.2%8.6%8.6%8.6%10.1%10.0%9.0%8.4%7.7%
Retail Third-Party Seller Services24.4%23.5%22.6%20.7%19.7%16.9%12.2%11.3%9.4%5.6%5.2%
Retail Subscription Services46.9%38.8%34.8%26.3%17.9%16.9%10.3%6.6%4.7%4.7%3.8%
AWS39.6%36.7%33.8%25.4%17.9%16.0%13.2%13.2%10.3%8.5%6.6%
Other126.9%75.2%47.0%37.6%34.8%22.6%12.2%8.5%8.5%7.5%4.7%
Total Net Sales
Expenses
Cost of Sales60.8%61.8%61.3%61.3%60.8%60.8%61.3%61.3%59.7%59.7%60.6%
Fulfillment17.3%16.2%16.0%16.0%16.1%16.2%16.3%16.3%16.3%16.3%16.3%
Marketing5.0%5.2%5.3%5.3%5.3%5.3%5.3%5.3%5.6%5.5%5.5%
Technology and Content12.1%12.2%12.3%12.3%12.3%11.8%11.8%11.8%11.8%11.6%11.3%
General and Administrative4.1%3.1%2.1%2.1%2.1%2.1%2.1%2.0%2.0%2.0%2.0%
Other Operating Expense, net0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%0.2%
Total Operating Expenses99.5%98.6%97.1%97.0%96.6%96.3%96.9%96.8%95.6%95.3%95.8%
Stock-Based Compensation (SBC) (% of SG&A)6.1%6.1%6.1%6.1%6.1%6.1%6.1%6.1%6.1%6.1%6.1%
Tax Rate20.0%20.0%22.5%22.5%22.5%22.5%22.5%22.5%22.5%22.5%22.5%
Interest Income Rate (Opening Balance)1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Interest Expense Rate (Average Debt)7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%
Balance Sheet
Inventory Days6868686868686868686868
Accounts Receivable Days3030303030303030303030
Change in Goodwill00000000000
Change in Other Assets0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Change in Marketable Securities0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Accounts Payable Days124124124124124124124124124124124
Accrued Expenses10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%
Unearned Revenue5.0%5.0%5.0%5.0%5.0%5.0%5.0%5.0%5.0%5.0%5.0%
Cash Capex % of revenue7.0%7.0%7.0%6.0%6.0%6.0%5.5%5.0%5.0%4.5%4.5%
PP&E Acquired under Capital Leases7.5%6.0%5.0%5.0%5.0%4.0%4.0%4.0%3.0%2.9%2.9%
Depreciation % of PPE (Opening Balance)40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%
Repayment of Capital Leases (Opening Balance)39.0%39.0%39.0%39.0%39.0%39.0%39.0%39.0%39.0%39.0%39.0%
Change in Long-Term Debt00000000000
Change in Common Shares00000000000
Change in Treasury Stock00000000000
Change in Additional Paid-in Capital00000000000
Dividends00000000000
Proceeds from Property and Equipment Incentives00000000000
Acquisitions, net of Cash Acquired, and Other00000000000
Sales and Maturities of Marketable Securities00000000000
Change in Basic Shares Outstanding1.2%1.1%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Change in Diluted Shares Outstanding1.6%1.3%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
OTHER CASE
Segmented Revenue Growth
Online Stores0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Physical Stores0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Retail Third-Party Seller Services0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Retail Subscription Services0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
AWS0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Other0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Net Sales
Expenses
Cost of Sales59.8%59.8%59.8%59.8%59.8%59.8%59.8%59.8%59.8%59.8%59.8%
Fulfillment13.0%13.0%13.0%13.0%13.0%13.0%13.0%13.0%13.0%13.0%13.0%
Marketing7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%
Technology and Content12.0%12.0%12.0%12.0%12.0%12.0%12.0%12.0%12.0%12.0%12.0%
General and Administrative3.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%
Other Operating Expense, net1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Total Operating Expenses95.8%94.8%94.8%94.8%94.8%94.8%94.8%94.8%94.8%94.8%94.8%
Stock-Based Compensation (SBC) (% of SG&A)6.0%6.8%6.8%6.8%6.8%6.8%6.8%6.8%6.8%6.8%6.8%
Tax Rate20.0%20.0%20.0%20.0%20.0%20.0%20.0%20.0%20.0%20.0%20.0%
Interest Income Rate (Opening Balance)1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Interest Expense Rate (Average Debt)5.5%5.5%5.5%5.5%5.5%5.5%5.5%5.5%5.5%5.5%5.5%
Balance Sheet
Inventory Days5052525252525252525252
Accounts Receivable Days2527272727272727272727
Change in Goodwill00000000000
Change in Other Assets0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Change in Marketable Securities0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Accounts Payable Days118118118118118118118118118118118
Accrued Expenses10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%10.0%
Unearned Revenue3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%
Cash Capex % of revenue6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%
PP&E Acquired under Capital Leases7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%
Depreciation % of PPE (Opening Balance)40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%40.0%
Repayment of Capital Leases (Opening Balance)38.0%38.0%38.0%38.0%38.0%38.0%38.0%38.0%38.0%38.0%38.0%
Change in Long-Term Debt00000000000
Change in Common Shares00000000000
Change in Treasury Stock00000000000
Change in Additional Paid-in Capital00000000000
Dividends00000000000
Proceeds from Property and Equipment Incentives00000000000
Acquisitions, net of Cash Acquired, and Other00000000000
Sales and Maturities of Marketable Securities00000000000
Change in Basic Shares Outstanding1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Change in Diluted Shares Outstanding1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%

Disclaimer

Disclaimer This model is intended solely for educational and training purposes. The information contained herein does not constitute investment advice, or an offer to sell, or the solicitation of any offer to buy any securities of Amazon.com, Inc. (NasdaqGS:AMZN) or any other security. This content in this model has not been approved or disapproved by (a) Amazon.com, Inc., (b) S&P Global Market Intelligence Inc., (c) Pitchbook Data, Inc., (d) Morningstar, Inc., (e) any equity research analyst that covers Amazon.com, Inc., or (f) any securities regulator in any province or territory of Canada, the United States Securities and Exchange Commission or any other United States federal or state regulatory authority, and no such commission or authority has passed upon the merits, accuracy or adequacy of this content, nor is it intended that any will. The information in this model does not constitute the provision of investment, tax, legal or other professional advice. As with all investments, there are associated risks and you could lose money investing – including, potentially, your entire investment. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. No reliance may be placed for any purpose on the information and opinions contained herein or their accuracy or completeness, and nothing contained herein may be relied upon in making any investment decision. This model is provided “as is”. CFI Education Inc. and its affiliates have no liability arising out of your use of this model. The model is Copyright material of CFI Education Inc., all rights reserved.

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