Amazon Web Services: $180 Billion Valuation
Summary #AWS is the pioneer and leader of the cloud infrastructure services industry and possesses enormous first-mover and scale advantage. Most recent 10-K reported by the company provides sufficient information to value AWS accurately as a standalone business. DCF valuation shows that AWS has an intrinsic value of $180 billion, which would rank it as the 30th largest public company in the world. Amazon Web Services (AWS) is the pioneer and leader of the cloud infrastructure services industry. It is also the crown jewel of Amazon.com, Inc. (NASDAQ:AMZN) as it is the fastest growing and by far the most profitable segment of Amazon’s overall business. For any Amazon investor, it is important to understand AWS’s value in itself in order to understand the company’s value as a whole. Fortunately, the most recent 10-K provides sufficient information to make it possible to value AWS accurately as a standalone business. This presentation will attempt to conduct a comprehensive DCF valuation of AWS based on the data presented in the company’s 2016 10-K.