Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
4.47B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
7.06%.
Starting with 4.47B and growing at 7.06%
for 5 years, we estimate Free Cash Flow will be
6.28B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 169.96M.
We will project this out 5 year(s) with a growth rate
of 0.62%.
Estimated Diluted Shares Outstanding: 175.29M.
Step 3: Project Future Stock Price
Using a price ratio of 16.05, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(6.28B ÷ 175.29M) × 16.05 =
$575
Step 4: Project Future Dividends Paid
Forward dividend per share: $7.52.
Projected over 5 years with a growth rate of
20.45%, dividends add to total shareholder return.
Expected dividends in 5 years:
$59.86939310930133.
Step 5: Discount the Projected Stock Price
Projected stock price: $575.
Including dividends, total future value: $634.87.
Discounted at 10% per
year over 5 years → Fair Value:
$394.
