Discounted Cash Flow (DCF) Analysis Levered
Cisco Systems, Inc. (CSCO)
$48.67
+0.45 (+0.93%)
All numbers are in Millions, Currency in USD
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 | 49,330 | 51,904 | 49,301 | 49,818 | 51,557 | 52,168.24 | 52,786.73 | 53,412.55 | 54,045.79 | 54,686.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 13,666 | 15,831 | 15,426 | 15,454 | 13,226 | 15,250.58 | 15,431.38 | 15,614.33 | 15,799.45 | 15,986.76 |
| 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 | 12,832 | 14,922 | 14,656 | 14,762 | 12,749 | 14,487.04 | 14,658.79 | 14,832.58 | 15,008.43 | 15,186.37 |
Weighted Average Cost Of Capital
| Share price | $ 48.67 |
|---|---|
| Beta | 0.966 |
| Diluted Shares Outstanding | 4,192 |
| Cost of Debt | |
| Tax Rate | 18.41 |
| After-tax Cost of Debt | 3.08% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.088 |
| Total Debt | 9,515 |
| Total Equity | 204,024.64 |
| Total Capital | 213,539.64 |
| Debt Weighting | 4.46 |
| Equity Weighting | 95.54 |
| 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 | 49,330 | 51,904 | 49,301 | 49,818 | 51,557 | 52,168.24 | 52,786.73 | 53,412.55 | 54,045.79 | 54,686.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 13,666 | 15,831 | 15,426 | 15,454 | 13,226 | 15,250.58 | 15,431.38 | 15,614.33 | 15,799.45 | 15,986.76 |
| Capital Expenditure | -834 | -909 | -770 | -692 | -477 | -763.54 | -772.59 | -781.75 | -791.02 | -800.40 |
| Free Cash Flow | 12,832 | 14,922 | 14,656 | 14,762 | 12,749 | 14,487.04 | 14,658.79 | 14,832.58 | 15,008.43 | 15,186.37 |
| WACC | ||||||||||
| PV LFCF | 13,431.34 | 12,600.20 | 11,820.49 | 11,089.03 | 10,402.84 | |||||
| SUM PV LFCF | 59,343.89 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.86 |
| Free cash flow (t + 1) | 15,490.09 |
| Terminal Value | 264,336.07 |
| Present Value of Terminal Value | 181,073.27 |
Intrinsic Value
| Enterprise Value | 240,417.17 |
|---|---|
| Net Debt | 2,436 |
| Equity Value | 237,981.17 |
| Shares Outstanding | 4,192 |
| Equity Value Per Share | 56.77 |