Last Price$63.5(1.0%)
Market Cap$256.2B
DCF value
$90.9
Undervalued (DCF value)
43.3%
Discount Rate
6.7%
Long-Term Growth Rate
4.0%
Stock quality
6/10
Good
CSCO DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Jul'20 Actual | Jul'21 Actual | Jul'22 Actual | Jul'23 Actual | Jul'24 Actual | Jul'25 Estimate | Jul'26 Estimate | Jul'27 Estimate | Jul'28 Estimate | Jul'29 Estimate | Jul'30 Estimate | Jul'31 Estimate | Jul'32 Estimate | Jul'33 Estimate | Jul'34 Estimate | Jul'35 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 49,301.0 (5.0%) | 49,818.0 1.0% | 51,557.0 3.5% | 56,998.0 10.6% | 53,803.0 (5.6%) | 55,975.2 4.0% | 58,466.6 4.5% | 60,970.2 4.3% | 63,559.5 4.2% | 66,236.4 4.2% | 69,002.7 4.2% | 71,860.1 4.1% | 74,810.6 4.1% | 77,855.8 4.1% | 80,997.4 4.0% | 84,237.3 4.0% |
% margin | 13,620.0 27.6% | 12,833.0 25.8% | 13,969.0 27.1% | 15,031.0 26.4% | 12,181.0 22.6% | 15,451.9 27.6% | 16,139.7 27.6% | 16,830.8 27.6% | 17,545.6 27.6% | 18,284.5 27.6% | 19,048.2 27.6% | 19,836.9 27.6% | 20,651.4 27.6% | 21,492.0 27.6% | 22,359.3 27.6% | 23,253.7 27.6% |
NOPAT % effective tax rate | 10,933.0 22.2% | 10,248.4 20.6% | 11,397.5 22.1% | 12,376.7 21.7% | 10,275.3 19.1% | 13,034.5 23.3% | 13,614.6 23.3% | 14,197.6 23.3% | 14,800.6 23.3% | 15,423.9 23.3% | 16,068.1 23.3% | 16,733.5 23.3% | 17,420.5 23.3% | 18,129.6 23.3% | 18,861.2 23.3% | 19,615.7 23.3% |
% of revenue | 1,808.0 3.7% | 1,862.0 3.7% | 1,957.0 3.8% | 1,726.0 3.0% | 2,507.0 4.7% | 2,142.6 3.8% | 2,238.0 3.8% | 2,333.9 3.8% | 2,433.0 3.8% | 2,535.4 3.8% | 2,641.3 3.8% | 2,750.7 3.8% | 2,863.6 3.8% | 2,980.2 3.8% | 3,100.5 3.8% | 3,224.5 3.8% |
% of revenue | (770.0) (1.6%) | (692.0) (1.4%) | (477.0) (0.9%) | (849.0) (1.5%) | (670.0) (1.2%) | (682.9) (1.2%) | (713.3) (1.2%) | (743.8) (1.2%) | (775.4) (1.2%) | (808.1) (1.2%) | (841.8) (1.2%) | (876.7) (1.2%) | (912.7) (1.2%) | (949.8) (1.2%) | (988.2) (1.2%) | (1,027.7) (1.2%) |
% of revenue | 918.0 1.9% | 1,984.0 4.0% | (1,722.0) (3.3%) | 5,042.0 8.8% | (4,298.0) (8.0%) | (463.2) (0.8%) | (483.8) (0.8%) | (504.5) (0.8%) | (525.9) (0.8%) | (548.1) (0.8%) | (571.0) (0.8%) | (594.6) (0.8%) | (619.1) (0.8%) | (644.2) (0.8%) | (670.2) (0.8%) | (697.1) (0.8%) |
Free Cash Flow to Firm (FCFF) % of revenue | 12,889.0 26.1% | 13,402.4 26.9% | 11,155.5 21.6% | 18,295.7 32.1% | 7,814.3 14.5% | 14,031.0 25.1% | 14,655.5 25.1% | 15,283.1 25.1% | 15,932.2 25.1% | 16,603.2 25.1% | 17,296.6 25.1% | 18,012.8 25.1% | 18,752.4 25.1% | 19,515.7 25.1% | 20,303.3 25.1% | 21,115.4 25.1% |
% of FCFF used in calculation | 40.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | 9.50 | ||||||
Discount factor | 0.97 | 0.91 | 0.85 | 0.80 | 0.75 | 0.70 | 0.66 | 0.61 | 0.58 | 0.54 | ||||||
Discounted FCFF (DFCFF) | 5,433.1 | 13,295.6 | 12,993.3 | 12,693.7 | 12,396.7 | 12,102.6 | 11,811.5 | 11,523.5 | 11,238.7 | 10,957.2 |
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CSCO DCF Value
DCF Value Calculation
as of Mar 03, 2025
Sum of DFCFF
% share of EV
114.4B
30.0%
Terminal Value (TV)
494.8B
Discounted TV
% share of EV
267.0B
70.0%
381.5B
Total Debt
32.2B
367.1B
Shares outstanding
4,036.5M
FX rate
1.0
90.9
43.3% undervalued
Equity Value Bridge
CSCO DCF Financials
Revenue
$53.8B -> $81.0B
4.2% CAGR
Operating Income
$12.2B -> $22.4B
6.3% CAGR
FCFF
$7,814.3M -> $20.3B
10.0% CAGR
CSCO DCF sensitivity
DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
6.0%
$94.0
$94.0
$94.0
$94.0
$94.0
6.5%
$92.0
$92.0
$92.0
$92.0
$92.0
6.7%
$91.0
$91.0
$91.0
$91.0
$91.0
7.5%
$82.0
$87.0
$87.0
$87.0
$87.0
8.0%
$73.0
$79.0
$85.0
$85.0
$85.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
6.0%
48.0%
48.0%
48.0%
48.0%
48.0%
6.5%
45.0%
45.0%
45.0%
45.0%
45.0%
6.7%
43.0%
43.0%
43.0%
43.0%
43.0%
7.5%
29.0%
37.0%
37.0%
37.0%
37.0%
8.0%
15.0%
24.0%
34.0%
34.0%
34.0%
Explore more intrinsic value tools hub for CSCO
Margin of safety
Peter Lynch charts
Ben Graham Fair Value
Earnings Power Value
Relative Value
Earnings growth model
Discount rate
Peter Lynch Fair Value
Intrinsic Value
Reverse DCF
FAQ
What is Cisco Systems, Inc. DCF (discounted cash flow) valuation?
As of Mar 03, 2025, Cisco Systems, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $90.9. This suggests it may be undervalued by 43.3% compared to its current price of around $63.5, using a WACC of 6.7% and growth rates of 4.0%.
What is Cisco Systems, Inc. WACC?
As of Mar 03, 2025, Cisco Systems, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 6.7%.
What is Cisco Systems, Inc. Enterprise Value?
As of Mar 03, 2025, Cisco Systems, Inc.'s Enterprise Value (EV) is approximately $381.5B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.