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  • Running The Numbers: Amazon Looks Expensive [View article]
    $AMZN grew revenues from $6.9bn in 2004 to $14.8bn in 2007 - a 29% CAGR in that period. Our analysis has the same growth moving forward - growth in the core business and other opportunities (i.e. Web Services). $30.5bn in 2010 is a 28% CAGR from 2007 to 2010.

    Our analysis suggests $AMZN is overvalued at current share prices. Even with significant revenue growth projections and a 5% terminal growth rate. Even assuming these growth rates are achieved - the stock looks expensive.
    Sep 27 01:32 am |Rating: 0 0
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