Amazon DCF Valuation

A discounted cash flow (DCF) valuation aims to find the intrinsic value (a.k.a the price worth paying) for a stock. 

In this exercise, I conducted a DCF valuation for Amazon.com Inc [AMZN], one of the world's largest public companies. This valuation uses free cash flow to the firm (FCFF) as the cash flow metric, and the weighted average cost of capital (WACC) as the discount rate.

Notably, most line items were held at a relatively constant proportion, so as to isolate the effect of 2 main drivers of the change in FCFF:

• Revenue growth 

• Gross margin increase