Understanding How Amazon's Use Of Capital Leases Overstates Its Cash Flow Metrics
- Amazon claims to be focused on long-term growth in free cash flow instead of earnings.
- This is widely cited to justify the valuation of the business.
- Amazon’s extensive use of Capital Leases overstates both their Operating cash flow and Free cash flow metrics.
- Amazon’s Balance Sheet includes significant amounts of additional debt which is included in the Other Liabilities line item.
Oakmark's Bill Nygren Is Looking At Amazon's Valuation Incorrectly
- Value investor Bill Nygren recently invested in Amazon.
- Assumptions about profitability takes a leap of faith.
- Nygren's valuation method incorporating an adjusted price-to-sales ratio is fundamentally flawed.
- Amazon: The Future Growth Implied By Its Price To Sales Ratio
- How A Real Value Investor Evaluates Netflix
- A Response To Whitney Tilson's Netflix Flip-Flop
- Warren Buffett's Fuzzy Math and Hypocrisy
Is Warren Buffett Losing His Mind?
Aug. 8, 2011 • 29 Comments
- Why the Economics of Netflix's Streaming Business Is Likely to Fail