Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
551.8M
as of May 31, 2025.
We will project this out 5 years with a yearly growth
rate of
-3.5%.
Starting with 551.8M and growing at -3.5%
for 5 years, we estimate Free Cash Flow will be
461.76M.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 268.5M.
We will project this out 5 year(s) with a growth rate
of 0.1%.
Estimated Diluted Shares Outstanding: 269.84M.
Step 3: Project Future Stock Price
Using a price ratio of 35.41, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(461.76M ÷ 269.84M) × 35.41 =
$60
Step 4: Project Future Dividends Paid
Forward dividend per share: $2.19.
Projected over 5 years with a growth rate of
-6.66%, dividends add to total shareholder return.
Expected dividends in 5 years:
$9.216873152693147.
Step 5: Discount the Projected Stock Price
Projected stock price: $60.
Including dividends, total future value: $69.22.
Discounted at 10% per
year over 5 years → Fair Value:
$42.
