Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
1.67B
as of Feb 28, 2025.
We will project this out 5 years with a yearly growth
rate of
12.24%.
Starting with 1.67B and growing at 12.24%
for 5 years, we estimate Free Cash Flow will be
2.97B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 30.89M.
We will project this out 5 year(s) with a growth rate
of 8.73%.
Estimated Diluted Shares Outstanding: 46.95M.
Step 3: Project Future Stock Price
Using a price ratio of 1.26, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(2.97B ÷ 46.95M) × 1.26 =
$79
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.25.
Projected over 5 years with a growth rate of
n/a, dividends add to total shareholder return.
Expected dividends in 5 years:
$6.25.
Step 5: Discount the Projected Stock Price
Projected stock price: $79.
Including dividends, total future value: $85.25.
Discounted at 10% per
year over 5 years → Fair Value:
$52.
