Case Study Format: (Amazon Case Study)
Heading
Summary of Objectives
What you do
Context background
How you get involved
Overview
Descriptive
Purpose – 3-5 sentences
Amazon Case Study
Summary of Objectives
This case study aims to provide a comprehensive overview of how to value Amazon.com, Inc. (AMZN) using
advanced financial modeling techniques. The key objectives of this case study are:
1. Build an integrated 3-statement financial forecast for Amazon based on its historical financial statements
and industry trends.
2. Apply various valuation methodologies, including Discounted Cash Flow (DCF) analysis and
Comparable Company Analysis (Comps), to derive an intrinsic value for Amazon's shares.
3. Develop an investment recommendation on Amazon's stock based on the valuation analysis and key
assumptions.
4. Create a detailed financial modeling dashboard and output that highlights the most important
information from the analysis.
What You Do
Context and Background
Amazon.com, Inc. is a leading global e-commerce and cloud computing company that has experienced rapid
growth and expansion over the past two decades. The company operates in various business segments,
including online retail, Amazon Web Services (AWS), advertising, and other emerging initiatives.To value
Amazon effectively, it is crucial to understand the company's business model, competitive landscape, growth
drivers, and key risks. This case study will guide you through the process of building a comprehensive financial
model and valuation analysis for Amazon.
How You Get Involved
As a financial analyst, you have been tasked with conducting a detailed valuation of Amazon to provide an
investment recommendation to your firm's clients. You will leverage your expertise in financial modeling,
valuation methodologies, and industry analysis to build a robust and insightful case study on Amazon.
Overview
Purpose
The purpose of this case study is to demonstrate the application of advanced financial modeling and valuation
techniques to value a complex, high-growth company like Amazon. By the end of this case study, you will have
a deep understanding of how to:
1. Construct a detailed 3-statement financial forecast for Amazon, incorporating various revenue streams,
operating expenses, capital expenditures, and other key drivers.
2. Apply a Discounted Cash Flow (DCF) analysis to derive an intrinsic value for Amazon's shares,
considering factors such as the company's cost of capital, growth rates, and terminal value.
3. Perform a Comparable Company Analysis (Comps) to benchmark Amazon's valuation against its
industry peers.
4. Develop an investment recommendation on Amazon's stock, supported by the valuation analysis and
key assumptions.
5. Present the findings in a comprehensive financial modeling dashboard and output.
By the end of this case study, you will have a robust understanding of how to value a complex, high-growth
company like Amazon using advanced financial modeling and valuation techniques.
