Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
4.66B
as of Aug 4, 2023.
We will project this out 5 years with a yearly growth
rate of
5.48%.
Starting with 4.66B and growing at 5.48%
for 5 years, we estimate Free Cash Flow will be
6.09B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 431.79M.
We will project this out 5 year(s) with a growth rate
of 0.24%.
Estimated Diluted Shares Outstanding: 437M.
Step 3: Project Future Stock Price
Using a price ratio of 15.75, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(6.09B ÷ 437M) × 15.75 =
$219
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: $219.
Including dividends, total future value: $219.
Discounted at 10% per
year over 5 years → Fair Value:
$135.
