Amazon.com, Inc. (AMZN): Our Calculation of Intrinsic Value

Each week we run a DCF (Discounted Cash Flow) model on a company from our watchlist. This week’s pick: Amazon.com, Inc. (AMZN).

Profile

Amazon.com is one of the world’s largest technology and retail platforms, operating through its North America, International, and AWS segments. The company dominates global e-commerce, cloud computing, and digital advertising, while expanding into AI infrastructure and subscription ecosystems like Prime Video and Music.

AWS remains the primary profit engine, generating high-margin recurring revenue, while advertising and logistics efficiencies continue to expand overall profitability. With more than $670 billion in annual revenue, a cash balance exceeding $100 billion, and improving free cash flow, Amazon’s scale and integration give it a durable competitive moat across multiple industries.

DCF Analysis

Inputs:

Discount Rate: 10%
Terminal Growth Rate: 3%
WACC: 10%

Forecasted Free Cash Flows (in billions USD)

2025: $25.0 → PV:…