Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
506.4M
as of May 31, 2025.
We will project this out 5 years with a yearly growth
rate of
4.68%.
Starting with 506.4M and growing at 4.68%
for 5 years, we estimate Free Cash Flow will be
636.52M.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 30.64M.
We will project this out 5 year(s) with a growth rate
of -4.6%.
Estimated Diluted Shares Outstanding: 24.22M.
Step 3: Project Future Stock Price
Using a price ratio of 16.3, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(636.52M ÷ 24.22M) × 16.3 =
$428
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.81.
Projected over 5 years with a growth rate of
-0.39%, dividends add to total shareholder return.
Expected dividends in 5 years:
$4.010627925825249.
Step 5: Discount the Projected Stock Price
Projected stock price: $428.
Including dividends, total future value: $432.01.
Discounted at 10% per
year over 5 years → Fair Value:
$268.
