Amazon.com Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss)	30,425)	(2,722)	33,364)	21,331)	11,588)
Net noncash charges	66,062)	70,360)	32,574)	31,252)	29,364)
Changes in operating assets and liabilities	(11,541)	(20,886)	(19,611)	13,481)	(2,438)
Net cash provided by operating activities	84,946)	46,752)	46,327)	66,064)	38,514)
Cash paid for interest, net of capitalized interest, net of tax¹	2,522)	981)	1,549)	1,437)	1,296)
Purchases of property and equipment	(52,729)	(63,645)	(61,053)	(40,140)	(16,861)
Proceeds from property and equipment sales and incentives	4,596)	5,324)	5,657)	5,096)	4,172)
Property and equipment acquired under finance leases, net of remeasurements and modifications	(642)	(675)	(7,061)	(11,588)	(13,723)
Free cash flow to the firm (FCFF)	38,693)	(11,263)	(14,581)	20,869)	13,398)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Amazon.com Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Amazon.com Inc. FCFF increased from 2021 to 2022 and from 2022 to 2023.

Amazon.com Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	18.96%	54.19%	12.56%	11.84%	16.99%
Interest Paid, Net of Tax
Cash paid for interest, net of capitalized interest, before tax	3,112)	2,142)	1,772)	1,630)	1,561)
Less: Cash paid for interest, net of capitalized interest, tax²	590)	1,161)	223)	193)	265)
Cash paid for interest, net of capitalized interest, net of tax	2,522)	981)	1,549)	1,437)	1,296)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² 2023 Calculation
Cash paid for interest, net of capitalized interest, tax = Cash paid for interest, net of capitalized interest × EITR
= 3,112 × 18.96% = 590

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Amazon.com Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	1,806,085)
Free cash flow to the firm (FCFF)	38,693)
Valuation Ratio
EV/FCFF	46.68
Benchmarks
EV/FCFF, Competitors¹
Home Depot Inc.	19.66
Lowe’s Cos. Inc.	22.83
TJX Cos. Inc.	23.43
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	40.04
EV/FCFF, Industry
Consumer Discretionary	31.62

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Amazon.com Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	1,776,793)	1,075,370)	1,582,224)	1,645,118)	996,679)
Free cash flow to the firm (FCFF)²	38,693)	(11,263)	(14,581)	20,869)	13,398)
Valuation Ratio
EV/FCFF³	45.92	—	—	78.83	74.39
Benchmarks
EV/FCFF, Competitors⁴
Home Depot Inc.	27.17	25.12	20.22	19.11	21.30
Lowe’s Cos. Inc.	19.56	19.56	14.88	20.95	18.88
TJX Cos. Inc.	31.93	33.03	18.30	19.08	21.16
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	38.32	111.04	130.00	51.35	42.44
EV/FCFF, Industry
Consumer Discretionary	32.34	55.69	66.32	52.28	30.93

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 1,776,793 ÷ 38,693 = 45.92

⁴ Click competitor name to see calculations.

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Amazon.com Inc. (NASDAQ:AMZN)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical