Discounted Cash Flow (DCF) Analysis Levered

Cisco Systems, Inc. (CSCO)

$47.91

-0.72 (-1.48%)
All numbers are in Millions, Currency in USD
Stock DCF: 55.91 | 47.91 | undervalue

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 $ 47.91
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 8.182
Total Debt 9,515
Total Equity 200,838.72
Total Capital 210,353.72
Debt Weighting 4.52
Equity Weighting 95.48
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 13,420.1412,579.2011,790.9511,052.1010,359.54
SUM PV LFCF 59,201.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.95
Free cash flow (t + 1) 15,490.09
Terminal Value 260,337.71
Present Value of Terminal Value 177,592.19

Intrinsic Value

Enterprise Value 236,794.11
Net Debt 2,436
Equity Value 234,358.11
Shares Outstanding 4,192
Equity Value Per Share 55.91