Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
3.27B
as of May 31, 2025.
We will project this out 5 years with a yearly growth
rate of
18.49%.
Starting with 3.27B and growing at 18.49%
for 5 years, we estimate Free Cash Flow will be
7.63B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 1.48B.
We will project this out 5 year(s) with a growth rate
of -1.34%.
Estimated Diluted Shares Outstanding: 1.38B.
Step 3: Project Future Stock Price
Using a price ratio of 40.52, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(7.63B ÷ 1.38B) × 40.52 =
$224
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.97.
Projected over 5 years with a growth rate of
3.51%, dividends add to total shareholder return.
Expected dividends in 5 years:
$10.737223715788236.
Step 5: Discount the Projected Stock Price
Projected stock price: $224.
Including dividends, total future value: $234.74.
Discounted at 10% per
year over 5 years → Fair Value:
$145.
