Problem 1. The purpose of this problem set is to value the company Amazon.com Inc . (Amazon), i. to estimate the intrinsic value (price) per share of...

Problem 1. The purpose of this problem set is to value the company Amazon.com Inc. (Amazon), i.e. to estimate the intrinsic value (price) per share of the company.

Here is the basic information that you will need, which is also available from Yahoo! Finance (all numbers in millions):

Year 2014

Revenues 88,988

EBIT 99

EBIT as % of revenues 0.11%

Taxes (unlevered) 32

Tax rate 32%

Net Income (unlevered) 67

Net Capex 147

Goodwill 3,319

Property and Equipment (PP&E) 16,967

Depreciation 4,746

as % of previous year's Property Equipment 43%

Capex 4,893

NWC -12,355

NWC as % of revenues -14%