DCF Tool

CSCO

Cisco Systems, Inc. – Telephone Apparatus Manufacturing
Cisco Systems, Inc., commonly known as Cisco, is an American-based multinational digital communications technology conglomerate corporation headquartered in San Jose, California.
Analysis Results
Intrinsic Value $95.21
Latest Price $48.47
Relative Value 49% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 2.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 2.8%, 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)
2024 12.3 11.9
2025 12.7 11.7
2026 13.0 11.6
2027 13.4 11.5
2028 13.8 11.4
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 413 billion. This corresponds to a present value of 329 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 58.1 billion. Adding in the terminal value gives a total present value of 387 billion.

There are presently 4.06 billion outstanding shares, so the intrinsic value per share is 95.21.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 43,348,000,000
Current Cash 26,146,000,000
Current Liabilities 31,309,000,000
Current Debt 1,733,000,000
Non-Cash Working Capital (NCWC) -12,374,000,000
Change in NCWC -5,283,000,000
EBIT 15,562,000,000
Tax Provision 2,705,000,000
Depreciation and Amortization 1,726,000,000
Capital Expenditure -849,000,000
Unlevered Free Cash Flow 8,407,912,129
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

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