Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
49.51B
as of Jun 30, 2024.
We will project this out 5 years with a yearly growth
rate of
59.01%.
Starting with 49.51B and growing at 59.01%
for 5 years, we estimate Free Cash Flow will be
503.28B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 2.19B.
We will project this out 5 year(s) with a growth rate
of -0.02%.
Estimated Diluted Shares Outstanding: 2.19B.
Step 3: Project Future Stock Price
Using a price ratio of 2.34, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(503.28B ÷ 2.19B) × 2.34 =
$538
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.54.
Projected over 5 years with a growth rate of
-11.79%, dividends add to total shareholder return.
Expected dividends in 5 years:
$1.9731419016374352.
Step 5: Discount the Projected Stock Price
Projected stock price: $538.
Including dividends, total future value: $539.97.
Discounted at 10% per
year over 5 years → Fair Value:
$335.
