Hersh Shefrin: Amazon’s target price: Forbes
Hersh Shefrin, Mario L. Belotti Professor of Finance, published an article about Amazon’s stock valuations and how they appear to have been derived incorrectly. Throughout the Forbes article, Shefrin discusses the improbability of Credit Suisse’s analysis of Amazon’s price target. Furthermore, he provides a step-by-step analysis comparing Credit Suisse’s analysis process to that which the textbook suggests and tests determine.
"In my opinion, a methodological flaw is causing Credit Suisse’s price target for Amazon to be significantly inflated," Shefrin begins the piece. "Moreover, I believe that the associated overvaluation is the tip of a large iceberg. The 'iceberg' is a metaphor for many analysts across the board succumbing to the flaw."
Learn more about Professor Hersh Shefrin »