Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
2B
as of May 10, 2025.
We will project this out 5 years with a yearly growth
rate of
3.42%.
Starting with 2B and growing at 3.42%
for 5 years, we estimate Free Cash Flow will be
2.37B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 16.73M.
We will project this out 5 year(s) with a growth rate
of -6.47%.
Estimated Diluted Shares Outstanding: 11.97M.
Step 3: Project Future Stock Price
Using a price ratio of 20.26, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(2.37B ÷ 11.97M) × 20.26 =
$4008
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: $4008.
Including dividends, total future value: $4008.
Discounted at 10% per
year over 5 years → Fair Value:
$2488.
