Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
19.77B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
2.7%.
Starting with 19.77B and growing at 2.7%
for 5 years, we estimate Free Cash Flow will be
22.59B.
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 -0.35%.
Estimated Diluted Shares Outstanding: 2.14B.
Step 3: Project Future Stock Price
Using a price ratio of 6.97, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(22.59B ÷ 2.14B) × 6.97 =
$73
Step 4: Project Future Dividends Paid
Forward dividend per share: $3.
Projected over 5 years with a growth rate of
2.04%, dividends add to total shareholder return.
Expected dividends in 5 years:
$15.776744194437805.
Step 5: Discount the Projected Stock Price
Projected stock price: $73.
Including dividends, total future value: $88.78.
Discounted at 10% per
year over 5 years → Fair Value:
$55.
