Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
84.81B
as of Jul 31, 2025.
We will project this out 5 years with a yearly growth
rate of
11.68%.
Starting with 84.81B and growing at 11.68%
for 5 years, we estimate Free Cash Flow will be
147.33B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 1.41B.
We will project this out 5 year(s) with a growth rate
of -0.38%.
Estimated Diluted Shares Outstanding: 1.38B.
Step 3: Project Future Stock Price
Using a price ratio of 3.25, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(147.33B ÷ 1.38B) × 3.25 =
$346
Step 4: Project Future Dividends Paid
Forward dividend per share: $4.29.
Projected over 5 years with a growth rate of
6.11%, dividends add to total shareholder return.
Expected dividends in 5 years:
$24.87815004787456.
Step 5: Discount the Projected Stock Price
Projected stock price: $346.
Including dividends, total future value: $370.88.
Discounted at 10% per
year over 5 years → Fair Value:
$230.
