Discounted Cash Flow (DCF) Analysis Levered
Cisco Systems, Inc. (CSCO)
$ 54.82
-0.51 (-0.92%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 48,005 | 49,330 | 51,904 | 49,301 | 49,818 | 50,317.63 | 50,822.28 | 51,331.99 | 51,846.81 | 52,366.79 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 13,876 | 13,666 | 15,831 | 15,426 | 15,454 | 15,036.86 | 15,187.67 | 15,339.99 | 15,493.84 | 15,649.23 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -964 | -834 | -909 | -770 | -692 | -845.43 | -853.91 | -862.48 | -871.13 | -879.86 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 12,912 | 12,832 | 14,922 | 14,656 | 14,762 | 14,191.43 | 14,333.76 | 14,477.51 | 14,622.71 | 14,769.37 |
Weighted Average Cost Of Capital
| Share price | $ 54.82 |
|---|---|
| Beta | 0.942 |
| Diluted Shares Outstanding | 4,236 |
| Cost of Debt | |
| Tax Rate | 20.14 |
| After-tax Cost of Debt | 3.01% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.237 |
| Total Debt | 11,526 |
| Total Equity | 232,217.52 |
| Total Capital | 243,743.52 |
| Debt Weighting | 4.73 |
| Equity Weighting | 95.27 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 48,005 | 49,330 | 51,904 | 49,301 | 49,818 | 50,317.63 | 50,822.28 | 51,331.99 | 51,846.81 | 52,366.79 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 13,876 | 13,666 | 15,831 | 15,426 | 15,454 | 15,036.86 | 15,187.67 | 15,339.99 | 15,493.84 | 15,649.23 |
| Capital Expenditure | -964 | -834 | -909 | -770 | -692 | -845.43 | -853.91 | -862.48 | -871.13 | -879.86 |
| Free Cash Flow | 12,912 | 12,832 | 14,922 | 14,656 | 14,762 | 14,191.43 | 14,333.76 | 14,477.51 | 14,622.71 | 14,769.37 |
| WACC | ||||||||||
| PV LFCF | 12,611.28 | 12,007.69 | 11,432.99 | 10,885.80 | 10,364.80 | |||||
| SUM PV LFCF | 60,786.56 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.08 |
| Free cash flow (t + 1) | 15,064.75 |
| Terminal Value | 369,234.16 |
| Present Value of Terminal Value | 274,874.41 |
Intrinsic Value
| Enterprise Value | 335,660.97 |
|---|---|
| Net Debt | 2,351 |
| Equity Value | 333,309.97 |
| Shares Outstanding | 4,236 |
| Equity Value Per Share | 78.69 |