Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
1.32B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
4.59%.
Starting with 1.32B and growing at 4.59%
for 5 years, we estimate Free Cash Flow will be
1.66B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 658.39M.
We will project this out 5 year(s) with a growth rate
of 1.23%.
Estimated Diluted Shares Outstanding: 699.89M.
Step 3: Project Future Stock Price
Using a price ratio of 3.51, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(1.66B ÷ 699.89M) × 3.51 =
$8
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.7.
Projected over 5 years with a growth rate of
-0.85%, dividends add to total shareholder return.
Expected dividends in 5 years:
$3.426098468210275.
Step 5: Discount the Projected Stock Price
Projected stock price: $8.
Including dividends, total future value: $11.43.
Discounted at 10% per
year over 5 years → Fair Value:
$7.
