Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
12.5B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
-0.91%.
Starting with 12.5B and growing at -0.91%
for 5 years, we estimate Free Cash Flow will be
11.94B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 2.69B.
We will project this out 5 year(s) with a growth rate
of -1.71%.
Estimated Diluted Shares Outstanding: 2.47B.
Step 3: Project Future Stock Price
Using a price ratio of 31.77, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(11.94B ÷ 2.47B) × 31.77 =
$153
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.15.
Projected over 5 years with a growth rate of
6.94%, dividends add to total shareholder return.
Expected dividends in 5 years:
$6.800146891503875.
Step 5: Discount the Projected Stock Price
Projected stock price: $153.
Including dividends, total future value: $159.8.
Discounted at 10% per
year over 5 years → Fair Value:
$99.
