You are considering investing in Amazon.com (NASDAQ:AMZN). You will need to make an investment recommendation based on the theoretical value of AMZN….

You are considering investing in Amazon.com (NASDAQ:AMZN). You will need to

make an investment recommendation based on the theoretical value of AMZN. Any

assumptions that you rely upon should be clearly stated your answer. This requires you

to complete several steps:

a) Undertake an industry and company analysis (see supplementary resources on

Blackboard) (15 Marks).

b) Select an appropriate present value model and derive a theoretical price for the share (7

Marks).

c) Select at least two appropriate valuation multiple/ratio to evaluate if the company is

over or under valued. (6 marks).

d) Determine whether you would invest in the company’s ordinary shares based on your

answers in b) and c) (2 Marks).