Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
7.55B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
11.91%.
Starting with 7.55B and growing at 11.91%
for 5 years, we estimate Free Cash Flow will be
13.25B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 2.48B.
We will project this out 5 year(s) with a growth rate
of -1.56%.
Estimated Diluted Shares Outstanding: 2.29B.
Step 3: Project Future Stock Price
Using a price ratio of 10.09, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(13.25B ÷ 2.29B) × 10.09 =
$58
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.95.
Projected over 5 years with a growth rate of
8.94%, dividends add to total shareholder return.
Expected dividends in 5 years:
$5.883856021611063.
Step 5: Discount the Projected Stock Price
Projected stock price: $58.
Including dividends, total future value: $63.88.
Discounted at 10% per
year over 5 years → Fair Value:
$39.
