Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
7.26B
as of Jun 30, 2024.
We will project this out 5 years with a yearly growth
rate of
-4.23%.
Starting with 7.26B and growing at -4.23%
for 5 years, we estimate Free Cash Flow will be
5.85B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 280.34M.
We will project this out 5 year(s) with a growth rate
of -0.11%.
Estimated Diluted Shares Outstanding: 278.8M.
Step 3: Project Future Stock Price
Using a price ratio of 3.59, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(5.85B ÷ 278.8M) × 3.59 =
$75
Step 4: Project Future Dividends Paid
Forward dividend per share: $2.72.
Projected over 5 years with a growth rate of
6.95%, dividends add to total shareholder return.
Expected dividends in 5 years:
$16.08758596652998.
Step 5: Discount the Projected Stock Price
Projected stock price: $75.
Including dividends, total future value: $91.09.
Discounted at 10% per
year over 5 years → Fair Value:
$56.
