Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
4.4B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
18.03%.
Starting with 4.4B and growing at 18.03%
for 5 years, we estimate Free Cash Flow will be
10.09B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 3.44B.
We will project this out 5 year(s) with a growth rate
of -0.2%.
Estimated Diluted Shares Outstanding: 3.4B.
Step 3: Project Future Stock Price
Using a price ratio of 28.09, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(10.09B ÷ 3.4B) × 28.09 =
$83
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.54.
Projected over 5 years with a growth rate of
4.02%, dividends add to total shareholder return.
Expected dividends in 5 years:
$2.9795857443833826.
Step 5: Discount the Projected Stock Price
Projected stock price: $83.
Including dividends, total future value: $85.98.
Discounted at 10% per
year over 5 years → Fair Value:
$53.
