Amazon.com Inc. (NASDAQ: AMZN)

Present Value of Free Cash Flow to the Firm (FCFF)

A public-facing FCFF valuation page with two modes: Website Example and Current Public Data. It shows the valuation summary, WACC, growth logic, forecast tables, and an implied terminal-growth check using the current market price.
Intrinsic value / share
$0.00
Current price
$0.00
WACC used
0.00%
Implied terminal growth
0.00%
Cash Flow FCFF₀ → FCFF₁ → FCFF₂ Forecast + discounting DCF value engine WACC discount rate Growth assumptions Intrinsic Value
Interactive valuation Current public data mode Example mode

Inputs and scenario buttons

Ready.

Market + FCFF inputs

WACC inputs

Growth inputs

Show assumptions and website links
Website Example uses the example values shown on the Stock Analysis on Net FCFF page structure.
Current Public Data uses: FCF proxy = 14,937; price = 208.76; cost of equity = 8.60%; cost of debt = 4.25%; tax rate = 18.00%; WACC override = 8.40%.
Terminal growth is a long-run mature growth assumption, not a short-run operating growth assumption. It is commonly set much lower than near-term growth because it is assumed to continue indefinitely.

Intrinsic Stock Value (Valuation Summary)

Ready.
Year Value FCFFt or TVt Calculation Present value
Intrinsic value of Amazon capital
Less: Debt and finance leases
Add: Cash + marketable securities
Intrinsic value of common stock
Intrinsic value per share
Current share price

Weighted Average Cost of Capital (WACC)

Ready.
Component Value Weight Required return Calculation
Equity (fair value)
Debt + finance leases
Show WACC details and source note
Current public-data WACC source reference:
https://valueinvesting.io/AMZN/valuation/wacc

FCFF Growth Rate (g)

Ready.

PRAT model

Average RR
Average ROIC
Initial FCFF growth rate (g₁)
Show PRAT calculation

Terminal / final growth

Total capital, fair value
FCFF0
WACC used
Final growth used
Show terminal growth logic
Manual terminal growth is a long-run steady-state assumption. It is commonly lower than Stage 1 growth because it is applied indefinitely after the forecast period.

Growth forecast by year

Year Value gₜ Calculation note

FCFF forecast and present value

Ready.
Year Forecast item Value Calculation Present value
Show forecast walkthrough
  • Start with FCFF0.
  • Apply each year’s growth rate to forecast FCFF1, FCFF2, and so on.
  • Discount each FCFF by the WACC used in the model.
  • Calculate terminal value using the final growth rate.
  • Discount terminal value back to present value.
  • Sum all present values to get enterprise value.
  • Subtract debt and add cash to move from enterprise value to common equity value.
  • Divide by shares outstanding to estimate intrinsic value per share.
Valuation depends heavily on the cash-flow base, WACC, Stage 1 growth, terminal growth, and capital-structure adjustments.

Implied Terminal Growth Check

Ready.

Given the current price, WACC, Stage 1 growth, and forecast period, this box solves for the terminal growth rate that would make the model value match the market price.

Target price used
WACC used
Stage 1 growth used
Forecast years
Implied terminal growth
Show interpretation
  • This box keeps the current WACC and Stage 1 growth unchanged.
  • It then solves for the terminal growth rate that would justify the current stock price.
  • If the implied terminal growth is too high, the model may be using overly optimistic long-run assumptions.
  • If the implied terminal growth is modest, the current price may be easier to justify under the model.
Show source note
  • Current price: public quote / price page
  • WACC: public WACC page
  • Stage 1 growth: model assumption
  • Implied terminal growth: solved by the valuation model
Amazon FCFF Valuation • Public DCF walkthrough page