Amazon: It Is Amazing How Overvalued Its Share Price Is [View article]
Of the entire S&P 500, Amazon is more expensive by free-cash-flow ("FCF") than all but 13 companies (if you ignore companies with negative FCF...). Or rather, it is more expensive than 97.4% of the S&P 500 (again, ignoring those with negative FCF).
The average P/FCF of the DJIA is 13.633 (as of yesterday), if Amazon was priced similarly, its shares would sell for $33.15.
Amazon: It Is Amazing How Overvalued Its Share Price Is [View article]
The average P/FCF of the DJIA is 13.633 (as of yesterday), if Amazon was priced similarly, its shares would sell for $33.15.
Amazon P/FCF calculation:
TTM FCF* of: $1,099,000,000
Present Market Cap**: $109,110,000,000
= P/FCF of 99.28
*TTM FCF = TTM Operating Cash Flow - TTM Capital Expenditure
**from Yahoo! Finance