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This is done all the time when pieces of businesses are bought and sold. It gets a little complex when the businesses are related (like Amazon Advertising and e
by spoonjim 4y ago
This is done all the time when pieces of businesses are bought and sold. It gets a little complex when the businesses are related (like Amazon Advertising and e-commerce, as opposed to Amazon e-commerce and AWS which are more fully independent of each other).
- arcturus17 4y agoI understand approximating present value by discounting cash flows but not how you would come to the conclusion that the eCommerce business is valued at zero because the sum of AWS and ads make the total of the market cap.
- spoonjim 4y agoYou don’t, that is an inaccurate conclusion because the ads business would not exist without the e-commerce business.