Just curious on what people think of Amazon's current stock price -- while companies like Amazon and Tesla are flying high in stock price, they may seem overvalued based on DCF and comparable analysis evaluations. But I feel that these models don't fully capture the value of these companies due to their growth potential. How might you value a company like Amazon? or what do you think is important in analyzing?
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Both DCF and comparables valuation take into account growth so you're point is invalid.
Personally I know very little of the extreme technical side of valuation. But a behemoth like Amazon has a lot of what I consider "soft capital" or "soft value" which is evident with the way the market responds.
For example, they are looking at releasing a comparable service to GeekSquad and Best Buy lost a total of $1B in MarketValue. Or when they purchased Whole Foods, Blue Apron lost a lot of value (not sure exacts).
It's an interesting situation, because I feel that the valuations you see are based on expected innovation and expected market saturation. Even if the numbers don't look perfect on the outside. Just an interesting company when you talk about valuations.
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