DCF Tool

CSCO

Cisco Systems, Inc. – Telephone Apparatus Manufacturing
Cisco is the worldwide leader in technology that powers the Internet. Cisco inspires new possibilities by reimagining your applications, securing your data, transforming your infrastructure, and empowering your teams for a global and inclusive future.
Analysis Results
Intrinsic Value $62.88
Latest Price $40.00
Relative Value 36% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 5.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 13.9 12.9
2024 14.6 12.6
2025 15.3 12.3
2026 16.1 12.0
2027 16.9 11.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 306 billion. This corresponds to a present value of 197 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 61.5 billion. Adding in the terminal value gives a total present value of 258 billion.

There are presently 4.11 billion outstanding shares, so the intrinsic value per share is 62.88.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 36,717,000,000
Current Cash 19,267,000,000
Current Liabilities 25,640,000,000
Current Debt 1,099,000,000
Non-Cash Working Capital (NCWC) -7,091,000,000
Change in NCWC 2,064,000,000
EBIT 13,975,000,000
Tax Provision 2,665,000,000
Depreciation and Amortization 1,957,000,000
Capital Expenditure -477,000,000
Unlevered Free Cash Flow 14,946,410,720
Current Assets 39,112,000,000
Current Cash 24,518,000,000
Current Liabilities 26,257,000,000
Current Debt 2,508,000,000
Non-Cash Working Capital (NCWC) -9,155,000,000
Change in NCWC -983,000,000
EBIT 13,719,000,000
Tax Provision 2,671,000,000
Depreciation and Amortization 1,862,000,000
Capital Expenditure -692,000,000
Unlevered Free Cash Flow 11,142,959,055
Current Assets 43,573,000,000
Current Cash 29,419,000,000
Current Liabilities 25,331,000,000
Current Debt 3,005,000,000
Non-Cash Working Capital (NCWC) -8,172,000,000
Change in NCWC -993,000,000
EBIT 14,101,000,000
Tax Provision 2,756,000,000
Depreciation and Amortization 1,808,000,000
Capital Expenditure -770,000,000
Unlevered Free Cash Flow 11,364,156,335
Current Assets 47,755,000,000
Current Cash 33,413,000,000
Current Liabilities 31,712,000,000
Current Debt 10,191,000,000
Non-Cash Working Capital (NCWC) -7,179,000,000
Change in NCWC -671,000,000
EBIT 14,541,000,000
Tax Provision 2,950,000,000
Depreciation and Amortization 1,897,000,000
Capital Expenditure -909,000,000
Unlevered Free Cash Flow 11,914,073,708
Current Assets 61,837,000,000
Current Cash 46,548,000,000
Current Liabilities 27,035,000,000
Current Debt 5,238,000,000
Non-Cash Working Capital (NCWC) -6,508,000,000
Change in NCWC -128,000,000
EBIT 12,667,000,000
Tax Provision 12,929,000,000
Depreciation and Amortization 2,192,000,000
Capital Expenditure -834,000,000
Unlevered Free Cash Flow 1,336,861,722
Current Assets 83,703,000,000
Current Cash 70,492,000,000
Current Liabilities 27,583,000,000
Current Debt 7,992,000,000
Non-Cash Working Capital (NCWC) -6,380,000,000
Change in NCWC 1,408,000,000
EBIT 12,729,000,000
Tax Provision 2,678,000,000
Depreciation and Amortization 2,286,000,000
Capital Expenditure -964,000,000
Unlevered Free Cash Flow 12,684,664,360
Current Assets 78,719,000,000
Current Cash 65,756,000,000
Current Liabilities 24,911,000,000
Current Debt 4,160,000,000
Non-Cash Working Capital (NCWC) -7,788,000,000
Change in NCWC -3,929,000,000
EBIT 12,928,000,000
Tax Provision 2,181,000,000
Depreciation and Amortization 2,150,000,000
Capital Expenditure -1,146,000,000
Unlevered Free Cash Flow 7,820,649,535
Current Assets 76,283,000,000
Current Cash 60,416,000,000
Current Liabilities 23,623,000,000
Current Debt 3,897,000,000
Non-Cash Working Capital (NCWC) -3,859,000,000
Change in NCWC 402,000,000
EBIT 11,254,000,000
Tax Provision 2,220,000,000
Depreciation and Amortization 2,442,000,000
Capital Expenditure -1,227,000,000
Unlevered Free Cash Flow 10,640,495,580
Current Assets 67,114,000,000
Current Cash 52,074,000,000
Current Liabilities 19,809,000,000
Current Debt 508,000,000
Non-Cash Working Capital (NCWC) -4,261,000,000
Change in NCWC -263,000,000
EBIT 9,540,000,000
Tax Provision 1,862,000,000
Depreciation and Amortization 2,432,000,000
Capital Expenditure -1,275,000,000
Unlevered Free Cash Flow 8,605,540,916
Current Assets 65,521,000,000
Current Cash 50,610,000,000
Current Liabilities 22,192,000,000
Current Debt 3,283,000,000
Non-Cash Working Capital (NCWC) -3,998,000,000
Change in NCWC -3,100,000,000
EBIT 11,118,000,000
Tax Provision 1,244,000,000
Depreciation and Amortization 2,351,000,000
Capital Expenditure -1,160,000,000
Unlevered Free Cash Flow 7,977,077,669
Current Assets 65,518,000,000
Current Cash 48,716,000,000
Current Liabilities 17,731,000,000
Current Debt 31,000,000
Non-Cash Working Capital (NCWC) -898,000,000
Change in NCWC -114,000,000
EBIT 10,209,000,000
Tax Provision 2,118,000,000
Depreciation and Amortization 2,602,000,000
Capital Expenditure -1,126,000,000
Unlevered Free Cash Flow 9,442,575,745

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.