Amazon Financial Company Analysis
Amazon (AMZN) from Dec. 2018- Dec. 2020
Corporation and Competitor Comparison: Stock Price, PE ratio and earnings per share trend analysis with each compared to their competitors and the market (2-page written text min). A three-year trend analysis minimum. Provide values for your assigned corporation and at least two key market competitors. Provide a written analysis including comparison to the same two key market competitors.
- (Debt to Equity Ratio) including any significant changes in the firm’s capital structure over the last three to five years.
- Evaluation of the firm’s current Beta (trend not required).
- Calculate the weighted average cost of capital (WACC) using both the Security Market Line Approach and the Dividend Growth Model Approach. Compare the WACC for each approach, discussing the advantages and disadvantages of each approach.
Cash Flow Assessment:Review of the firm’s statement of cash flows for the last three to five years, including an assessment of the firm’s free cash flow over the last three to five years.
Conclusion with Analysts’ Recommendations:
- Your own closing summary of the firm’s financial health in relation to the overall economy and within its industry.
- Your own review of current analyst recommendations as a guide.