Discounted Cash Flow (DCF) Analysis Levered

Cisco Systems, Inc. (CSCO)

$ 54.82
-0.51 (-0.92%)
All numbers are in Millions, Currency in USD
Stock DCF: 78.69 | 54.82 | undervalue

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 48,00549,33051,90449,30149,81850,317.6350,822.2851,331.9951,846.8152,366.79
Revenue (%)
Operating Cash Flow 13,87613,66615,83115,42615,45415,036.8615,187.6715,339.9915,493.8415,649.23
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 12,91212,83214,92214,65614,76214,191.4314,333.7614,477.5114,622.7114,769.37

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 48,00549,33051,90449,30149,81850,317.6350,822.2851,331.9951,846.8152,366.79
Operating Cash Flow 13,87613,66615,83115,42615,45415,036.8615,187.6715,339.9915,493.8415,649.23
Capital Expenditure -964-834-909-770-692-845.43-853.91-862.48-871.13-879.86
Free Cash Flow 12,91212,83214,92214,65614,76214,191.4314,333.7614,477.5114,622.7114,769.37
WACC
PV LFCF 12,611.2812,007.6911,432.9910,885.8010,364.80
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