Step 1: Project Free Cash Flow
The most recent Free Cash Flow (TTM) value is
2.07B
as of May 31, 2025.
We will project this out 5 years with a yearly growth
rate of
1.21%.
Starting with 2.07B and growing at 1.21%
for 5 years, we estimate Free Cash Flow will be
2.2B.
Step 2: Project Future Diluted Shares Outstanding
The most recent Diluted Shares Outstanding value is 176.27M.
We will project this out 5 year(s) with a growth rate
of -0.84%.
Estimated Diluted Shares Outstanding: 168.99M.
Step 3: Project Future Stock Price
Using a price ratio of 24.62, formula: (Future Free Cash Flow ÷ Future Diluted Shares Outstanding)
× Price Ratio
(2.2B ÷ 168.99M) × 24.62 =
$319
Step 4: Project Future Dividends Paid
Forward dividend per share: $5.07.
Projected over 5 years with a growth rate of
0.33%, dividends add to total shareholder return.
Expected dividends in 5 years:
$25.559655399883614.
Step 5: Discount the Projected Stock Price
Projected stock price: $319.
Including dividends, total future value: $344.56.
Discounted at 10% per
year over 5 years → Fair Value:
$213.
