Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
3.65B
as of Sep 30, 2024.
We will project this out 5 years with a yearly growth
rate of
6.9%.
Starting with 3.65B and growing at 6.9%
for 5 years, we estimate Free Cash Flow will be
5.1B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 1.71B.
We will project this out 5 year(s) with a growth rate
of 1.47%.
Estimated Diluted Shares Outstanding: 1.84B.
Step 3: Project Future Stock Price
Using a price ratio of 37.01, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(5.1B ÷ 1.84B) × 37.01 =
$102
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.23.
Projected over 5 years with a growth rate of
-12.13%, dividends add to total shareholder return.
Expected dividends in 5 years:
$0.8323373939186797.
Step 5: Discount the Projected Stock Price
Projected stock price: $102.
Including dividends, total future value: $102.83.
Discounted at 10% per
year over 5 years → Fair Value:
$63.
