Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
2.56B
as of Dec 31, 2024.
We will project this out 5 years with a yearly growth
rate of
8.89%.
Starting with 2.56B and growing at 8.89%
for 5 years, we estimate Free Cash Flow will be
3.92B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 234.55M.
We will project this out 5 year(s) with a growth rate
of -2.62%.
Estimated Diluted Shares Outstanding: 205.39M.
Step 3: Project Future Stock Price
Using a price ratio of 26.91, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(3.92B ÷ 205.39M) × 26.91 =
$513
Step 4: Project Future Dividends Paid
Forward dividend per share: $3.44.
Projected over 5 years with a growth rate of
12.24%, dividends add to total shareholder return.
Expected dividends in 5 years:
$22.95607272675657.
Step 5: Discount the Projected Stock Price
Projected stock price: $513.
Including dividends, total future value: $535.96.
Discounted at 10% per
year over 5 years → Fair Value:
$332.
