Amazon.com, Inc.

: equity valuation

Abstract

The aim of this dissertation was to combine both theory and practice to find the Amazon’s
equity value, using all methods available, choosing those that are more suitable for this
firm in this explicit period. From all methods commonly used, the APV and the Relative
Valuation were the ones chosen, and from these two only the APV was used to compare
with the report from Citi.
The model used (Adjusted Present Value) and its assumptions gave a value per share of
1381.70 dollars, a far superior value to the one traded on the market on the same day
(1020.04), therefore it is recommended to buy and hold the stock.
After computing the stock value, a sensitivity analysis was done to better access the
impact that some variables have on the stock’s value.
Finally, a comparison with the report from Citi was conducted, to test the veracity of this
dissertation. In that report Citi states that the stock should be valued at 1200. In this
dissertation it was concluded that even this value of 1200 is underpricing the firm, that
has a huge potential to take the world.

Date of Award	15 May 2018
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)