Finance and Accounting Amazon – 5-Year Stock Forecast
1) Present the past 5 years financial ratios/data for Amazon – IN TABLE FORMAT (Return on Sales, Earnings Per share data, Price/Book Value ratio, Cash flow coverage ratio, Price/Earnings ratio, Price/Earnings to Growth ratio, Price/Sales ratio, Dividend Yield, Enterprise Value Multiple) and provide a brief explanation of the 5-year trend.
2) Forecast the Price/Earning for 2018 (Provide a high estimate and low estimate) and state why the estimate is as such.
3) Present current Shares Outstanding and compare current shares outstanding to the past 3 years data of shares outstanding and note the reason for any large change (i.e. Stock split, company buy-back strategy, etc.)
4) Forecast Amazon’s future sales 5-years out
a) Present past 5 years historical sales data
b) Identify major industry and sector that make up bulk of sales
c) Forecast sales for 2018 based on historical trends (High and Low estimated)
5) Convert the 2018 sales data to Earnings Per Share (Profit/#shares)
6) Conclude by forecasting the 2018 stock price (High and Low)