Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
500M
as of Jul 31, 2025.
We will project this out 5 years with a yearly growth
rate of
3.78%.
Starting with 500M and growing at 3.78%
for 5 years, we estimate Free Cash Flow will be
601.92M.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 338.4M.
We will project this out 5 year(s) with a growth rate
of -3.01%.
Estimated Diluted Shares Outstanding: 290.45M.
Step 3: Project Future Stock Price
Using a price ratio of 30.41, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(601.92M ÷ 290.45M) × 30.41 =
$63
Step 4: Project Future Dividends Paid
Forward dividend per share: $1.01.
Projected over 5 years with a growth rate of
5.99%, dividends add to total shareholder return.
Expected dividends in 5 years:
$5.84054814812016.
Step 5: Discount the Projected Stock Price
Projected stock price: $63.
Including dividends, total future value: $68.84.
Discounted at 10% per
year over 5 years → Fair Value:
$42.
