Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
1.62B
as of Jul 31, 2025.
We will project this out 5 years with a yearly growth
rate of
4.9%.
Starting with 1.62B and growing at 4.9%
for 5 years, we estimate Free Cash Flow will be
2.05B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 197.19M.
We will project this out 5 year(s) with a growth rate
of -2.57%.
Estimated Diluted Shares Outstanding: 173.12M.
Step 3: Project Future Stock Price
Using a price ratio of 35.8, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(2.05B ÷ 173.12M) × 35.8 =
$424
Step 4: Project Future Dividends Paid
Forward dividend per share: $4.11.
Projected over 5 years with a growth rate of
3.64%, dividends add to total shareholder return.
Expected dividends in 5 years:
$22.471410688624953.
Step 5: Discount the Projected Stock Price
Projected stock price: $424.
Including dividends, total future value: $446.47.
Discounted at 10% per
year over 5 years → Fair Value:
$277.
