Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
563M
as of Jun 30, 2024.
We will project this out 5 years with a yearly growth
rate of
18.15%.
Starting with 563M and growing at 18.15%
for 5 years, we estimate Free Cash Flow will be
1.3B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 184.21M.
We will project this out 5 year(s) with a growth rate
of -0.95%.
Estimated Diluted Shares Outstanding: 175.62M.
Step 3: Project Future Stock Price
Using a price ratio of 513.72, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(1.3B ÷ 175.62M) × 513.72 =
$3791
Step 4: Project Future Dividends Paid
Forward dividend per share: $3.49.
Projected over 5 years with a growth rate of
7.32%, dividends add to total shareholder return.
Expected dividends in 5 years:
$20.82078460367808.
Step 5: Discount the Projected Stock Price
Projected stock price: $3791.
Including dividends, total future value: $3811.82.
Discounted at 10% per
year over 5 years → Fair Value:
$2366.
