Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
1.5B
as of Sep 28, 2024.
We will project this out 5 years with a yearly growth
rate of
0.4%.
Starting with 1.5B and growing at 0.4%
for 5 years, we estimate Free Cash Flow will be
1.53B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 250.68M.
We will project this out 5 year(s) with a growth rate
of 0.06%.
Estimated Diluted Shares Outstanding: 251.44M.
Step 3: Project Future Stock Price
Using a price ratio of 8.08, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(1.53B ÷ 251.44M) × 8.08 =
$49
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.62.
Projected over 5 years with a growth rate of
-13.89%, dividends add to total shareholder return.
Expected dividends in 5 years:
$5.573384326723677.
Step 5: Discount the Projected Stock Price
Projected stock price: $49.
Including dividends, total future value: $54.57.
Discounted at 10% per
year over 5 years → Fair Value:
$33.
