Finance Journey

Introduction: BMW is a German Automaker with revenue sources of Financial Services and Automobile. I'm valuing mainly the automobile side of the business so I'll go more in depth on the automobile side rather than the financial services. Note that I'm basing my DCF off on 2021's data as 2022's is not available yet. Revenue: Automobiles producers had a great year due to an unexpected extraordinary event i.e. Covid-19. Revenue Y/Y for 2021 was at 12.37% clearly unsustainable especially given the size of BMW. “We therefore continue to expect our higher-than-average order books to normalize” - Q3 2022 Earnings. IN 2022 , revenue is unlikely to be as high as in 2021. I forecast about 8% Y/Y. Taking an in between number of what seems to be the most normalized between 2014, 2017 and 2019 where numbers were not overly shocked by US-China Tension(2018), COVID-19 (2020) or Economic Uncertainty(2013), Currency Exchange Fluctuation & Initial release of high margin model (20...

HISTORY: The story of AMZN is one of trials and tribulation, it was not always smooth sailing where valuation steadily rose over the years. Rather, it was one that required a visionary CEO, one who had sufficient foresight to take gambles that paid off, one who could stomach the choppy seas of business cycles, one who had the determination and patience to see through their largest gambles. Having a humble beginning, AMZN’s IPO MC was valued at $430 Million before losing 95% of their valuation in the tech bubble crash. AMZN managed to survive the tech bubble crash but their valuation held rather steady at around 17 billion in the early 2000s. Meaning investors believed that AMZN could no longer grow past this threshold and have matured. Reaching 17 billion in valuation by itself would’ve been an impressive feat but it wouldn’t be enough for a story worthy for the history books as companies like WMT had a valuation of about 200 billion at the same point in time. AMZN released prime in 20...