Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
18.6B
as of Jun 30, 2025.
We will project this out 5 years with a yearly growth
rate of
-7.9%.
Starting with 18.6B and growing at -7.9%
for 5 years, we estimate Free Cash Flow will be
12.33B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 205.9M.
We will project this out 5 year(s) with a growth rate
of -0.25%.
Estimated Diluted Shares Outstanding: 203.34M.
Step 3: Project Future Stock Price
Using a price ratio of 5.2, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(12.33B ÷ 203.34M) × 5.2 =
$315
Step 4: Project Future Dividends Paid
Forward dividend per share: $6.56.
Projected over 5 years with a growth rate of
26.39%, dividends add to total shareholder return.
Expected dividends in 5 years:
$58.90547038006106.
Step 5: Discount the Projected Stock Price
Projected stock price: $315.
Including dividends, total future value: $373.91.
Discounted at 10% per
year over 5 years → Fair Value:
$232.
