With the latest Q32024 Free Cash Flow of $1.198 billion, i updated my previous calculations of Projected Share Price:
1. Market Cap Calculation (at Current Share Price):
• Current Share Price: $9.59
• Shares Outstanding: 1.02 billion
• Market Cap = Share Price × Shares Outstanding
2. Current P/FCF Multiple:
• Current FCF: $1.198 billion
• Current P/FCF Multiple = Market Cap / FCF
3. Projection with Increased FCF:
Assuming an increase in FCF by $500 million annually, starting with February 2025, and keeping the P/CF multiple at 8.17:
• February 2025:
• Estimated FCF: $1.198 billion + $500 million = $1.698 billion
• Projected Market Cap: $1.698 billion × 8.17 = $13.87 billion
• Projected Share Price: $13.87 billion / 1.02 billion shares = $13.60
• End of 2025:
• Estimated FCF: $1.698 billion + $500 million = $2.198 billion
• Projected Market Cap: $2.198 billion × 8.17 = $17.96 billion
• Projected Share Price: $17.96 billion / 1.02 billion shares = $17.61
• End of 2026:
• Estimated FCF: $2.198 billion + $500 million = $2.698 billion
• Projected Market Cap: $2.698 billion × 8.17 = $22.05 billion
• Projected Share Price: $22.05 billion / 1.02 billion shares = $21.62
Summary of Updated Projected Share Prices:
• February 2025: Estimated share price = $13.60
• End of 2025: Estimated share price = $17.61
• End of 2026: Estimated share price = $21.62
These projections assume the P/FCF multiple remains constant at 8.17 and account for the updated FCF starting at $1.198 billion with an annual increase of $500 million. If Lumen’s performance improves, market sentiment may increase the P/FCF multiple, potentially resulting in even higher share prices.
monkeyfruit10 : fantastic work
Patience3to6Lumen OP : We may see a new partnership announced imminently
103578731 : xpay