Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
583M
as of Dec 31, 2020.
We will project this out 5 years with a yearly growth
rate of
44.81%.
Starting with 583M and growing at 44.81%
for 5 years, we estimate Free Cash Flow will be
3.71B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 2.89B.
We will project this out 5 year(s) with a growth rate
of 15.25%.
Estimated Diluted Shares Outstanding: 5.87B.
Step 3: Project Future Stock Price
Using a price ratio of 73.01, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(3.71B ÷ 5.87B) × 73.01 =
$46
Step 4: Project Future Dividends Paid
Forward dividend per share: $2.42.
Projected over 5 years with a growth rate of
1.97%, dividends add to total shareholder return.
Expected dividends in 5 years:
$12.704758630170385.
Step 5: Discount the Projected Stock Price
Projected stock price: $46.
Including dividends, total future value: $58.7.
Discounted at 10% per
year over 5 years → Fair Value:
$36.
