Calculate the intrinsic value of Amazon on a free cash flow basis assuming the following

Use FCF estimates for the next $4$ years from Factset $-2024-2027$ under the cash flow

estimates tab $-$ be sure you are using annual estimates

the company has $$x$ billion in long$-$term debt $-$ look up under credit analysis DCF overview

the company has $$x$ billion in marketable securities and cash $-$ look up in balance sheet for

most recent quarterly filing $-$ under financials

the company has $x$ billion shares outstanding $-$ can be found on the overview page $-$ note

$4\mathrm{.}450$ million $=4\mathrm{.}45$ billion $-$ try and keep all your measurements in billions $($the share valuation

will not be in billions$)$

the WACC is $12\%-$ the company is almost all equity $-$ verify the cost of equity using a risk free

rate of $3\%$ and a market risk premium of $6\mathrm{.}5\%-$ you will need to find the beta $-$ a $3$ year beta is

fine $-$ look under prices and risk in Factset $-($hint your cost of equity per CAPM should be close

to $12\%)$

$-$Free cash flow in year $5$ and beyond is expected to grow at $4\mathrm{.}0\%$ forever

Based on your findings should you buy Amazon today $-$ list $2$ things that could change your

conclusion.