close
How does this work?
Valuecruncher provides a starting point for your valuation by automatically generating estimates for each of the key inputs. You can modify these estimates with your own values and Valuecruncher will update the valuation.
Your Valuation
10 June 2008 |
187
views
Comments (1)
Valuation Details
| Member: | TheCrunchBlog |
| On: | 07 Jul 2008 |
| Views: | 187 |
| Comments: | 1 |
| Updated: | 31 minutes ago |
| Ticker: | AMZN |
| Market: | NASD |



This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/07/is-amazoncom-really-worth-over-70-a-share/
Our assumptions of revenues for the next three years are US$19.5 billion in 2008 increasing to US$29.5 billion in 2010. We have projected EBITDA margins increasing from 7% in 2008 to 8% in 2010.
We have used a terminal growth rate of 5%. Our view is that AMZN’s growth beyond 2010 will slow – but there is a distance to go yet. Our numbers project 2009 to 2010 revenue growth of 23%. This assumption has a significant impact on the valuation. If you believe AMZN has better future prospects – this will positively impact the valuation.
We have used a WACC (discount rate) of 10.5%. The WACC (discount rate) has a material impact on a discounted cash flow valuation (as does the terminal growth rate).
We used a terminal capital expenditure number of US$350 million. In our opinion capital expenditure should stabilize around this number.