Amazon (AMZN) from Dec. 2018- Dec. 2020
Corporation and Competitor Comparison: Stock Price, PE ratio and earnings per share trend analysis with each compared to their competitors and the market (2-page written text min). A three-year trend analysis minimum. Provide values for your assigned corporation and at least two key market competitors. Provide a written analysis including comparison to the same two key market competitors.
Capital Structure Assessment
i. (Debt to Equity Ratio) including any significant changes in the firms capital structure over the last three to five years.
ii. Evaluation of the firms current Beta (trend not required).
iii. Calculate the weighted average cost of capital (WACC) using both the Security Market Line Approach and the Dividend Growth Model Approach. Compare the WACC for each approach, discussing the advantages and disadvantages of each approach.
Cash Flow Assessment:Review of the firms statement of cash flows for the last three to five years, including an assessment of the firms free cash flow over the last three to five years.
Conclusion with Analysts Recommendations:
i. Your own closing summary of the firms financial health in relation to the overall economy and within its industry.
ii. Your own review of current analyst recommendations as a guide.
