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Cisco Systems (XSGO:CSCO) Intrinsic Value: Projected FCF : $51.70 (As of May. 28, 2024)


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What is Cisco Systems Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-05-28), Cisco Systems's Intrinsic Value: Projected FCF is $51.70. The stock price of Cisco Systems is $56.65. Therefore, Cisco Systems's Price-to-Intrinsic-Value-Projected-FCF of today is 1.1.

The historical rank and industry rank for Cisco Systems's Intrinsic Value: Projected FCF or its related term are showing as below:

XSGO:CSCO' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.73   Med: 1.11   Max: 1.56
Current: 1.1

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Cisco Systems was 1.56. The lowest was 0.73. And the median was 1.11.

XSGO:CSCO's Price-to-Projected-FCF is ranked better than
62.46% of 1633 companies
in the Hardware industry
Industry Median: 1.46 vs XSGO:CSCO: 1.10

Cisco Systems Intrinsic Value: Projected FCF Historical Data

The historical data trend for Cisco Systems's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cisco Systems Intrinsic Value: Projected FCF Chart

Cisco Systems Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.53 40.26 34.04 52.19 50.59

Cisco Systems Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 53.07 50.59 50.00 49.64 51.08

Competitive Comparison of Cisco Systems's Intrinsic Value: Projected FCF

For the Communication Equipment subindustry, Cisco Systems's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cisco Systems's Price-to-Projected-FCF Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Cisco Systems's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Cisco Systems's Price-to-Projected-FCF falls into.



Cisco Systems Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Cisco Systems's Free Cash Flow(6 year avg) = $14,218.40.

Cisco Systems's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Apr24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*14218.4+45768*0.8)/4060.000
=42.36

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Cisco Systems  (XSGO:CSCO) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Cisco Systems's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=56.65/42.359252988194
=1.34

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Cisco Systems Intrinsic Value: Projected FCF Related Terms

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Cisco Systems (XSGO:CSCO) Business Description

Industry
Address
170 West Tasman Drive, San Jose, CA, USA, 95134-1706
Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.

Cisco Systems (XSGO:CSCO) Headlines