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Under review

Financials Missing For AMAZON and TTM

Brian Yu 8 months ago • updated by OSV Support 8 months ago 2

Hi, two things I wanted to point out. 

1) OSV isn't listing Amazons R&D expense and that will eschew the valuations like EBIT, understandably.

2) Some of the stocks show a 0 for TTM. 

But thank you for your hard work and continued commitment to OSV! Have a great Holiday! God Bless. 

Under review

Hi Brian,

Unfortunately, AMZN doesn't list an R&D expense in its financial statements. Here's a link to their latest 10-K:

https://www.sec.gov/Archives/edgar/data/1018724/000101872418000005/amzn-20171231x10k.htm

You can see that they list a "Technology and content" expense on their income statement, and one of their notes mentions that this includes their company-sponsored R&D expense, but it would be impossible to know what is R&D and what is content, among other things. Like Netflix, I'm sure they're spending a lot on content. There's no way for us to systematically know what's R&D, content, or other technology. However, those expenses are included in our other operating expense lines, and thus would be deducted from EBITDA and EBIT. Unless you're adding back R&D for some reason, this shouldn't affect DCF or EBIT multiples valuations.

Thanks for your feedback! Let us know if we missed something.

Mike