Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
6.68B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
6.95%.
Starting with 6.68B and growing at 6.95%
for 5 years, we estimate Free Cash Flow will be
9.35B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 912.02M.
We will project this out 5 year(s) with a growth rate
of 0.84%.
Estimated Diluted Shares Outstanding: 950.97M.
Step 3: Project Future Stock Price
Using a price ratio of 28.76, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(9.35B ÷ 950.97M) × 28.76 =
$282
Step 4: Project Future Dividends Paid
Forward dividend per share: $2.25.
Projected over 5 years with a growth rate of
26.23%, dividends add to total shareholder return.
Expected dividends in 5 years:
$20.13997735865917.
Step 5: Discount the Projected Stock Price
Projected stock price: $282.
Including dividends, total future value: $302.14.
Discounted at 10% per
year over 5 years → Fair Value:
$187.
