Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
16.14B
as of Jun 30, 2024.
We will project this out 5 years with a yearly growth
rate of
88.36%.
Starting with 16.14B and growing at 88.36%
for 5 years, we estimate Free Cash Flow will be
382.78B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 716.69M.
We will project this out 5 year(s) with a growth rate
of 0.01%.
Estimated Diluted Shares Outstanding: 717.05M.
Step 3: Project Future Stock Price
Using a price ratio of 0.59, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(382.78B ÷ 717.05M) × 0.59 =
$314
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.32.
Projected over 5 years with a growth rate of
26.52%, dividends add to total shareholder return.
Expected dividends in 5 years:
$2.8808320548877564.
Step 5: Discount the Projected Stock Price
Projected stock price: $314.
Including dividends, total future value: $316.88.
Discounted at 10% per
year over 5 years → Fair Value:
$196.
