Amazon.com, Inc. (AMZN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 221.83

+2.2%

2:27 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Glenn D. Rudolph who wrote (108676)	9/21/2000 9:43:03 AM
From: Bob Kim	Read Replies (1) of 164684

Glenn, Additional color from HB yesterday on AMZN: "If Amazon were to grow at a 50% CAGR for the next ten years, it would generate $115 billion in revenue in 2010. At the company's stated operating margin target of 10%, this would yield $11.5 billion in operating income. Assuming a tax rate of 38%, the company would generate net income of $7.1 billion in 2010 (for comparison, Wal-Mart is projected to earn $6.6 billion this year). With 650 million shares outstanding, versus 440mm fully diluted today, this would yield 2010 EPS of $11. What would this be worth in 2010?--and, therefore, what is it worth today? At a market multiple of 20X, the $11 per share would generate a 2010 share price of $219. Discounted back to 2000 at a 20% discount rate, this would yield a current "fair value" of $41--about where the stock is trading today."

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next