Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
12.54B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
2.04%.
Starting with 12.54B and growing at 2.04%
for 5 years, we estimate Free Cash Flow will be
13.87B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 6.05B.
We will project this out 5 year(s) with a growth rate
of 12.18%.
Estimated Diluted Shares Outstanding: 10.75B.
Step 3: Project Future Stock Price
Using a price ratio of 34.97, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(13.87B ÷ 10.75B) × 34.97 =
$45
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.3.
Projected over 5 years with a growth rate of
-10.91%, dividends add to total shareholder return.
Expected dividends in 5 years:
$1.123734349828849.
Step 5: Discount the Projected Stock Price
Projected stock price: $45.
Including dividends, total future value: $46.12.
Discounted at 10% per
year over 5 years → Fair Value:
$28.
