$PayPal(PYPL)$
But, let's say Paypal, in terms of FCF and Rev, stay with the exact same growth rate as they have demonstrated in 2024 over the next 5 years. And they use all FCF for Buybacks. Just like they are doing right now. Where will PYPL's share price be in 5 years?
Buybacks have a huge effect on EPS due to the "denominator effect" and these earnings beats quarter after quarter pushes up their share price.
Autozone's share price rose to around $500/share at the time they bought back 50% of their shares. When they got up to owning 90% of their shares, today, it's at $3,075/share.
PYPL's FCF rose in 2024. If that continues, as expected, then PYPL, I think, could buy up, via buybacks, 50% of their shares. That means by 2029, it could be a $400+/share stock. But if that's correct, then that means PYPL's share price will gradually rise from $76/share to $400/share over the next 5 years with the largest jumps at ER.
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