Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
831M
as of Sep 30, 2024.
We will project this out 5 years with a yearly growth
rate of
1.09%.
Starting with 831M and growing at 1.09%
for 5 years, we estimate Free Cash Flow will be
877.29M.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 248.87M.
We will project this out 5 year(s) with a growth rate
of -1.12%.
Estimated Diluted Shares Outstanding: 235.24M.
Step 3: Project Future Stock Price
Using a price ratio of 34.74, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(877.29M ÷ 235.24M) × 34.74 =
$129
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.44.
Projected over 5 years with a growth rate of
4.75%, dividends add to total shareholder return.
Expected dividends in 5 years:
$8.085699099977454.
Step 5: Discount the Projected Stock Price
Projected stock price: $129.
Including dividends, total future value: $137.09.
Discounted at 10% per
year over 5 years → Fair Value:
$85.
