Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
1.94B
as of Jan 31, 2025.
We will project this out 5 years with a yearly growth
rate of
13.04%.
Starting with 1.94B and growing at 13.04%
for 5 years, we estimate Free Cash Flow will be
3.58B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 898.96M.
We will project this out 5 year(s) with a growth rate
of -2.34%.
Estimated Diluted Shares Outstanding: 798.59M.
Step 3: Project Future Stock Price
Using a price ratio of 11.12, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(3.58B ÷ 798.59M) × 11.12 =
$49
Step 4: Project Future Dividends Paid
Forward dividend per share: $0.4.
Projected over 5 years with a growth rate of
1.81%, dividends add to total shareholder return.
Expected dividends in 5 years:
$2.091732235248291.
Step 5: Discount the Projected Stock Price
Projected stock price: $49.
Including dividends, total future value: $51.09.
Discounted at 10% per
year over 5 years → Fair Value:
$31.
