Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
161.3M
as of Jun 30, 2023.
We will project this out 5 years with a yearly growth
rate of
19.58%.
Starting with 161.3M and growing at 19.58%
for 5 years, we estimate Free Cash Flow will be
394.39M.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 21.6M.
We will project this out 5 year(s) with a growth rate
of 2.18%.
Estimated Diluted Shares Outstanding: 24.06M.
Step 3: Project Future Stock Price
Using a price ratio of 2.6, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(394.39M ÷ 24.06M) × 2.6 =
$42
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.
Projected over 5 years with a growth rate of
n/a, dividends add to total shareholder return.
Expected dividends in 5 years:
$0.
Step 5: Discount the Projected Stock Price
Projected stock price: $42.
Including dividends, total future value: $42.
Discounted at 10% per
year over 5 years → Fair Value:
$26.
