Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
544M
as of Jul 31, 2024.
We will project this out 5 years with a yearly growth
rate of
7.81%.
Starting with 544M and growing at 7.81%
for 5 years, we estimate Free Cash Flow will be
792.31M.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 325.6M.
We will project this out 5 year(s) with a growth rate
of -2.71%.
Estimated Diluted Shares Outstanding: 283.8M.
Step 3: Project Future Stock Price
Using a price ratio of 29.42, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(792.31M ÷ 283.8M) × 29.42 =
$82
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.01.
Projected over 5 years with a growth rate of
5.99%, dividends add to total shareholder return.
Expected dividends in 5 years:
$5.84054814812016.
Step 5: Discount the Projected Stock Price
Projected stock price: $82.
Including dividends, total future value: $87.84.
Discounted at 10% per
year over 5 years → Fair Value:
$54.
