Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
2.29B
as of Jun 30, 2024.
We will project this out 5 years with a yearly growth
rate of
-6.19%.
Starting with 2.29B and growing at -6.19%
for 5 years, we estimate Free Cash Flow will be
1.66B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 1.26B.
We will project this out 5 year(s) with a growth rate
of -0.94%.
Estimated Diluted Shares Outstanding: 1.2B.
Step 3: Project Future Stock Price
Using a price ratio of 37.51, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(1.66B ÷ 1.2B) × 37.51 =
$51
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.07.
Projected over 5 years with a growth rate of
-2.23%, dividends add to total shareholder return.
Expected dividends in 5 years:
$5.056707347912395.
Step 5: Discount the Projected Stock Price
Projected stock price: $51.
Including dividends, total future value: $56.06.
Discounted at 10% per
year over 5 years → Fair Value:
$34.
