Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
26.91B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
-4.39%.
Starting with 26.91B and growing at -4.39%
for 5 years, we estimate Free Cash Flow will be
21.5B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 6.41B.
We will project this out 5 year(s) with a growth rate
of -1.48%.
Estimated Diluted Shares Outstanding: 5.95B.
Step 3: Project Future Stock Price
Using a price ratio of 19.43, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(21.5B ÷ 5.95B) × 19.43 =
$70
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.36.
Projected over 5 years with a growth rate of
3.44%, dividends add to total shareholder return.
Expected dividends in 5 years:
$7.399973975435043.
Step 5: Discount the Projected Stock Price
Projected stock price: $70.
Including dividends, total future value: $77.4.
Discounted at 10% per
year over 5 years → Fair Value:
$48.
