Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
1.4B
as of Jul 4, 2025.
We will project this out 5 years with a yearly growth
rate of
7.37%.
Starting with 1.4B and growing at 7.37%
for 5 years, we estimate Free Cash Flow will be
2B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 128.3M.
We will project this out 5 year(s) with a growth rate
of -1.27%.
Estimated Diluted Shares Outstanding: 120.35M.
Step 3: Project Future Stock Price
Using a price ratio of 15.99, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(2B ÷ 120.35M) × 15.99 =
$265
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.6.
Projected over 5 years with a growth rate of
-2.47%, dividends add to total shareholder return.
Expected dividends in 5 years:
$7.515113559756054.
Step 5: Discount the Projected Stock Price
Projected stock price: $265.
Including dividends, total future value: $272.52.
Discounted at 10% per
year over 5 years → Fair Value:
$169.
