Discounted Cash Flow (DCF) Analysis Levered

Cisco Systems, Inc. (CIS.BR)

$53.06

-2.42 (-4.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 50.83 | 53.06 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 49,33051,90449,30149,81851,55752,168.2452,786.7353,412.5554,045.7954,686.54
Revenue (%)
Operating Cash Flow 13,66615,83115,42615,45413,22615,250.5815,431.3815,614.3315,799.4515,986.76
Operating Cash Flow (%)
Capital Expenditure -834-909-770-692-477-763.54-772.59-781.75-791.02-800.40
Capital Expenditure (%)
Free Cash Flow 12,83214,92214,65614,76212,74914,487.0414,658.7914,832.5815,008.4315,186.37

Weighted Average Cost Of Capital

Share price $ 53.06
Beta 0.954
Diluted Shares Outstanding 4,192
Cost of Debt
Tax Rate 18.41
After-tax Cost of Debt 3.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.756
Total Debt 9,515
Total Equity 222,427.52
Total Capital 231,942.52
Debt Weighting 4.10
Equity Weighting 95.90
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 49,33051,90449,30149,81851,55752,168.2452,786.7353,412.5554,045.7954,686.54
Operating Cash Flow 13,66615,83115,42615,45413,22615,250.5815,431.3815,614.3315,799.4515,986.76
Capital Expenditure -834-909-770-692-477-763.54-772.59-781.75-791.02-800.40
Free Cash Flow 12,83214,92214,65614,76212,74914,487.0414,658.7914,832.5815,008.4315,186.37
WACC
PV LFCF 13,347.1912,442.8111,599.7110,813.7410,081.03
SUM PV LFCF 58,284.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.54
Free cash flow (t + 1) 15,490.09
Terminal Value 236,851.59
Present Value of Terminal Value 157,227.03

Intrinsic Value

Enterprise Value 215,511.52
Net Debt 2,436
Equity Value 213,075.52
Shares Outstanding 4,192
Equity Value Per Share 50.83