Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
6.9B
as of Jun 30, 2025.
We will project this out 5 years with a yearly growth
rate of
3.1%.
Starting with 6.9B and growing at 3.1%
for 5 years, we estimate Free Cash Flow will be
8.03B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 713.6M.
We will project this out 5 year(s) with a growth rate
of -1.15%.
Estimated Diluted Shares Outstanding: 673.5M.
Step 3: Project Future Stock Price
Using a price ratio of 31.07, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(8.03B ÷ 673.5M) × 31.07 =
$370
Step 4: Project Future Dividends Paid
Forward dividend per share: $8.75.
Projected over 5 years with a growth rate of
1.05%, dividends add to total shareholder return.
Expected dividends in 5 years:
$44.90749725150913.
Step 5: Discount the Projected Stock Price
Projected stock price: $370.
Including dividends, total future value: $414.91.
Discounted at 10% per
year over 5 years → Fair Value:
$257.
