Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
4.59B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
8.65%.
Starting with 4.59B and growing at 8.65%
for 5 years, we estimate Free Cash Flow will be
6.95B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 1.82B.
We will project this out 5 year(s) with a growth rate
of -0.83%.
Estimated Diluted Shares Outstanding: 1.75B.
Step 3: Project Future Stock Price
Using a price ratio of 35.01, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(6.95B ÷ 1.75B) × 35.01 =
$139
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.86.
Projected over 5 years with a growth rate of
8.38%, dividends add to total shareholder return.
Expected dividends in 5 years:
$5.258251111074438.
Step 5: Discount the Projected Stock Price
Projected stock price: $139.
Including dividends, total future value: $144.26.
Discounted at 10% per
year over 5 years → Fair Value:
$89.
