Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
4.4B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
13.36%.
Starting with 4.4B and growing at 13.36%
for 5 years, we estimate Free Cash Flow will be
8.24B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 459.5M.
We will project this out 5 year(s) with a growth rate
of -0.34%.
Estimated Diluted Shares Outstanding: 451.75M.
Step 3: Project Future Stock Price
Using a price ratio of 16.45, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(8.24B ÷ 451.75M) × 16.45 =
$300
Step 4: Project Future Dividends Paid
Forward dividend per share: $2.22.
Projected over 5 years with a growth rate of
-2.52%, dividends add to total shareholder return.
Expected dividends in 5 years:
$10.41386108337215.
Step 5: Discount the Projected Stock Price
Projected stock price: $300.
Including dividends, total future value: $310.41.
Discounted at 10% per
year over 5 years → Fair Value:
$192.
