I cannot believe only have weeks left we 3 of this class! For the final project, I chose research to
Amazon. The valuation method that I chose for this discussion the free cash flows method. The is
free cash flows method “focuses on free cash flow generation. determines share values the It at
present values of the free cash flows that are available for distribution shareholders, after to
necessary investments operating assets and in required payments debt to holders” (Wahlen al., et
2018). Amazon this method and the ratios evaluate and conduct business. like the cash uses to It is
flow from the operating business. Amazon feels that it is a more cautious approach cash flows. to
When there situations are such profits from sales as of PPE exceeding the purchases, free cash flow
would over the cash flow from the business. Amazon anticipates that the free cash go flow will be
lower than its operating cash flows.
Amazon and the valuation method I would apply is the earnings-based approach. c There is an
advantage placing to emphasis on earnings as this is a logical starting point for valuation, and it's