Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
7.18B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
-6.57%.
Starting with 7.18B and growing at -6.57%
for 5 years, we estimate Free Cash Flow will be
5.12B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 1.18B.
We will project this out 5 year(s) with a growth rate
of 1.21%.
Estimated Diluted Shares Outstanding: 1.25B.
Step 3: Project Future Stock Price
Using a price ratio of 5.9, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(5.12B ÷ 1.25B) × 5.9 =
$24
Step 4: Project Future Dividends Paid
Forward dividend per share: $3.54.
Projected over 5 years with a growth rate of
4.01%, dividends add to total shareholder return.
Expected dividends in 5 years:
$19.528145726906082.
Step 5: Discount the Projected Stock Price
Projected stock price: $24.
Including dividends, total future value: $43.53.
Discounted at 10% per
year over 5 years → Fair Value:
$27.
