Amazon Stock May Be Undervalued, Analysts Estimate Fair Value of $160 Per Share

The estimated fair value for Amazon stock is $160 per share, based on discounted cash flow analysis, compared to its current share price of $135.
Analysts have a consensus price target of $169 for Amazon, which is 5.3% above the estimated fair value.
Amazon's free cash flow is forecasted to grow over the next 10 years, from $51.2 billion in 2024 to $113.9 billion in 2033.
A discounted cash flow model was used to estimate Amazon's equity value at $1.7 trillion.
The analysis indicates Amazon may be undervalued currently, trading at a 16% discount to estimated fair value.

simplywall.st

Relevant topic timeline:

9/4/2023

A Bull Market Is Coming -- 1 Incredible Growth Stock to Buy Right Now to Help You Build Generational Wealth

Amazon's core value proposition of low prices, quick delivery, and a wide selection of merchandise, along with its investments in its distribution network and advertising business, are expected to drive its future earnings growth and make it a formidable force in the online retail and digital ad industries.

9/13/2023

Amazon Invests $440 Million to Raise Wages for Contracted Delivery Workers to $20.50 Per Hour

Amazon is investing over $440 million to increase wages for its contracted delivery employees, expecting them to earn an average of $20.50 per hour or more.

9/15/2023

Amazon Share Price Fairly Valued Currently, But Strong Growth Outlook Presents Future Upside

Despite seeing decent share price growth in the past few months, Amazon.com is currently trading at a fair value, with its future earnings expected to double, indicating a positive outlook for the company.

9/22/2023

AMC Shares Overvalued Based on Discounted Cash Flow Analysis

AMC Entertainment Holdings' estimated fair value is $8.58, which is 54% lower than its analyst price target of $18.78, indicating that the stock may be overvalued.

9/25/2023

Stocks Mixed as Amazon Rises on AI Investment, Chinese EVs Sink, Writers Strike Nears End

Amazon.com stock rose 0.6% after announcing its investment of up to $4 billion in Anthropic, an artificial intelligence firm.

10/17/2023

Amazon Share Price Fluctuates But Seen as Fairly Valued at Current Levels Despite Market Volatility

Amazon.com's current trading price of US$133 is considered to be fairly valued according to a valuation model, but with the potential for high growth and cash flow in the future, there may be a prime buying opportunity if the share price drops below its fair value.

Topics

Posted 9/21/2023, 1:10:13 PM