Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
12.5B
as of Jul 31, 2025.
We will project this out 5 years with a yearly growth
rate of
27.52%.
Starting with 12.5B and growing at 27.52%
for 5 years, we estimate Free Cash Flow will be
42.14B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 957.51M.
We will project this out 5 year(s) with a growth rate
of 2.76%.
Estimated Diluted Shares Outstanding: 1.1B.
Step 3: Project Future Stock Price
Using a price ratio of 32.9, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(42.14B ÷ 1.1B) × 32.9 =
$1263
Step 4: Project Future Dividends Paid
Forward dividend per share: $2.05.
Projected over 5 years with a growth rate of
n/a, dividends add to total shareholder return.
Expected dividends in 5 years:
$10.25.
Step 5: Discount the Projected Stock Price
Projected stock price: $1263.
Including dividends, total future value: $1273.25.
Discounted at 10% per
year over 5 years → Fair Value:
$790.
