Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
1.3B
as of May 25, 2025.
We will project this out 5 years with a yearly growth
rate of
-2.43%.
Starting with 1.3B and growing at -2.43%
for 5 years, we estimate Free Cash Flow will be
1.15B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 478.31M.
We will project this out 5 year(s) with a growth rate
of -0.43%.
Estimated Diluted Shares Outstanding: 468.11M.
Step 3: Project Future Stock Price
Using a price ratio of 15.56, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(1.15B ÷ 468.11M) × 15.56 =
$38
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.75.
Projected over 5 years with a growth rate of
2.85%, dividends add to total shareholder return.
Expected dividends in 5 years:
$9.386826551356116.
Step 5: Discount the Projected Stock Price
Projected stock price: $38.
Including dividends, total future value: $47.39.
Discounted at 10% per
year over 5 years → Fair Value:
$29.
