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You are considering investing in Amazon.com (NASDAQ:AMZN). You will need to make an investment recommendation based on the theoretical value of AMZN....
You are considering investing in Amazon.com (NASDAQ:AMZN). You will need to
make an investment recommendation based on the theoretical value of AMZN. Any
assumptions that you rely upon should be clearly stated your answer. This requires you
to complete several steps:
a) Undertake an industry and company analysis (see supplementary resources on
Blackboard) (15 Marks).
b) Select an appropriate present value model and derive a theoretical price for the share (7
Marks).
c) Select at least two appropriate valuation multiple/ratio to evaluate if the company is
over or under valued. (6 marks).
d) Determine whether you would invest in the company's ordinary shares based on your
answers in b) and c) (2 Marks).
