Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
459.4M
as of Sep 30, 2024.
We will project this out 5 years with a yearly growth
rate of
6.3%.
Starting with 459.4M and growing at 6.3%
for 5 years, we estimate Free Cash Flow will be
623.53M.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 503.58M.
We will project this out 5 year(s) with a growth rate
of 0.36%.
Estimated Diluted Shares Outstanding: 512.71M.
Step 3: Project Future Stock Price
Using a price ratio of 8.24, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(623.53M ÷ 512.71M) × 8.24 =
$10
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.13.
Projected over 5 years with a growth rate of
-20.27%, dividends add to total shareholder return.
Expected dividends in 5 years:
$0.368950214249729.
Step 5: Discount the Projected Stock Price
Projected stock price: $10.
Including dividends, total future value: $10.37.
Discounted at 10% per
year over 5 years → Fair Value:
$6.
