"Analyzing Amazon's Fair Value and Stock Outlook: A Tightrope Walk for Investors"
Originally Published 2 years ago — by Simply Wall St
A valuation analysis using the Discounted Cash Flow (DCF) model estimates that Amazon.com, Inc. (NASDAQ:AMZN) is trading at a fair value of around $160 per share, which is in line with its current share price of $135. Analysts have a price target of $169 for AMZN, indicating a potential 5.3% upside. The DCF model takes into account the company's future cash flows and discounts them to their present value. However, it's important to note that the DCF model has limitations and should not be the sole factor in investment decisions.