The company is scheduled to release its next quarterly earnings announcement on Thursday, April 25th 2024. That discrepancy has been causing the Dow to underperform during the recent tech-led rally. Over the past 12 months, the S&P 500 is up 28%, while the Dow is ahead 19%. The trailing 12-month correlation between the two averages is now in the bottom 20% since 1926, according to NDR. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams.

Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

1. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation.
2. We aim to bring you long-term focused analysis driven by fundamental data.
3. Upgrade to MarketBeat All Access to add more stocks to your watchlist.
4. Dan Niles discusses the “Fantastic Four” Mag 7 stocks.

The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks just search here. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The company is not a true retailer nor a pure-play manufacturer but in the business of connecting consumers and merchants together. The website was first created as a means of selling books at a discount but it has since grown to include most verticals in the retail sector.

AMZN price to book (PB)

Chief Executive Jamie Dimon praised the business environment in Texas during a visit there this week, while blasting his home state of New York as unfriendly to companies. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Upgrade to MarketBeat All Access to add more stocks to your watchlist.

And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Dan Niles discusses the “Fantastic Four” Mag 7 stocks. Aggregators like Thrasio raised billions of dollars from investors looking to cash in on the third-party seller dowmarkets rollup craze. For this month, the cycle/relative strength concept is applied. First, the Dow Jones 30 stocks are ranked from the best performer to the worst by calculating the expected return in that month. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time.

Simply Wall St has no position in any stocks mentioned. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.

The Nasdaq Reached a Record High in February: These 5 Stocks Were Likely the Main Drivers

The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$2.5t. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$178, the company appears a touch undervalued at a 26% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The second stage is also known as Terminal Value, this is the business’s cash flow after the first stage.

A few of the products the company does manufacture are the Kindle and Fire Tablets, Fire TVs, and smart home devices like Echo. Echo is powered by an AI personality named Alexa which can take vocal commands from its users. The three largest tech stocks in the Dow by market cap as of Friday were Apple, Microsoft and Salesforce, while key companies such as Nvidia and Alphabet were excluded. The key news item driving the stock higher was a bullish note on the stock from Roth MKM, which raised its price target from $165 to $180. It also maintained its buy rating and called the stock its top megacap pick for 2024. MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Amazon Estimates* in USD

For a number of reasons a very conservative growth rate is used that cannot exceed that of a country’s GDP growth. In this case we have used the 5-year average of the 10-year government lmfx review bond yield (2.3%) to estimate future growth. In the same way as with the 10-year ‘growth’ period, we discount future cash flows to today’s value, using a cost of equity of 7.1%.

We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company’s cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren’t available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

We’d like to share more about how we work and what drives our day-to-day business. The Fed’s preferred inflation data for January come out on Thursday. Plus earnings reports from Zoom, Domino’s Pizza, eBay, Monster, Salesforce, TJX, Paramount, and more.

The Dow is a smaller average than the S&P 500, with just 30 components, and it’s weighted by the share price of the individual stocks rather than the companies’ total market value. That makes some investors view the Dow, begun in May 1896, alvexo bad reviews as a poor representation of the American stock market. According to 45 analysts, the average rating for AMZN stock is «Strong Buy.» The 12-month stock price forecast is $182.29, which is an increase of 2.28% from the latest price.