Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
19.63B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
3.07%.
Starting with 19.63B and growing at 3.07%
for 5 years, we estimate Free Cash Flow will be
22.83B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 2.18B.
We will project this out 5 year(s) with a growth rate
of -0.58%.
Estimated Diluted Shares Outstanding: 2.12B.
Step 3: Project Future Stock Price
Using a price ratio of 9.63, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(22.83B ÷ 2.12B) × 9.63 =
$103
Step 4: Project Future Dividends Paid
Forward dividend per share: $3.14.
Projected over 5 years with a growth rate of
3.28%, dividends add to total shareholder return.
Expected dividends in 5 years:
$17.019242466611654.
Step 5: Discount the Projected Stock Price
Projected stock price: $103.
Including dividends, total future value: $120.02.
Discounted at 10% per
year over 5 years → Fair Value:
$74.
