Amazon.com Inc. (AMZN)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

Amazon.com Inc., FCFE calculation

USD $ in millions

	12 months ended	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Net income (loss)
	Net noncash charges
	Changes in operating assets and liabilities
	Net cash provided by operating activities
	Purchases of property and equipment, including internal-use software and website development, net
	Proceeds from property and equipment incentives
	Proceeds from long-term debt and other
	Repayments of long-term debt and other
	Principal repayments of capital lease obligations
	Principal repayments of finance lease obligations
	Free cash flow to equity (FCFE)

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Amazon.com Inc.'s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Amazon.com Inc.'s FCFE increased from 2015 to 2016 and from 2016 to 2017.

Amazon.com Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)
FCFE per share
Current share price (P)
Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors
Costco Wholesale Corp.
eBay Inc.
Home Depot Inc.
Lowe's Cos. Inc.
Netflix Inc.
Target Corp.
TJX Cos. Inc.
Walmart Inc.
P/FCFE, Sector
General Retailers
P/FCFE, Industry
Consumer Services

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Amazon.com Inc., historical P/FCFE calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Free cash flow to equity (FCFE) (in millions)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	Costco Wholesale Corp.
	eBay Inc.
	Home Depot Inc.
	Lowe's Cos. Inc.
	Netflix Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	P/FCFE, Sector
	General Retailers
	P/FCFE, Industry
	Consumer Services

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Amazon.com Inc.'s Annual Report.

2017 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
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⁵ P/FCFE = Share price ÷ FCFE per share
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Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders' equity.	Amazon.com Inc.'s P/FCFE ratio declined from 2015 to 2016 and from 2016 to 2017.

	Amazon.com Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality