Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
15.78B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
2.75%.
Starting with 15.78B and growing at 2.75%
for 5 years, we estimate Free Cash Flow will be
18.07B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 2.49B.
We will project this out 5 year(s) with a growth rate
of -0.93%.
Estimated Diluted Shares Outstanding: 2.38B.
Step 3: Project Future Stock Price
Using a price ratio of 18.94, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(18.07B ÷ 2.38B) × 18.94 =
$143
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.99.
Projected over 5 years with a growth rate of
-3.98%, dividends add to total shareholder return.
Expected dividends in 5 years:
$8.989330229259615.
Step 5: Discount the Projected Stock Price
Projected stock price: $143.
Including dividends, total future value: $151.99.
Discounted at 10% per
year over 5 years → Fair Value:
$94.
