Cisco Systems Inc., FCFE calculation

US$ in millions

12 months ended:	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019	Jul 28, 2018
Net income	12,613)	11,812)	10,591)	11,214)	11,621)	110)
Net noncash charges	2,231)	3,136)	2,879)	3,294)	3,133)	4,212)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures	5,042)	(1,722)	1,984)	918)	1,077)	9,344)
Net cash provided by operating activities	19,886)	13,226)	15,454)	15,426)	15,831)	13,666)
Acquisition of property and equipment	(849)	(477)	(692)	(770)	(909)	(834)
Proceeds from sales of property and equipment	3)	91)	28)	179)	22)	59)
Short-term borrowings, original maturities of 90 days or less, net	(602)	606)	(5)	(3,470)	3,446)	(2,502)
Issuances of debt	—)	1,049)	—)	—)	2,250)	6,877)
Repayments of debt	(500)	(3,550)	(3,000)	(6,720)	(6,780)	(12,375)
Free cash flow to equity (FCFE)	17,938)	10,945)	11,785)	4,645)	13,860)	4,891)

Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Cisco Systems Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Cisco Systems Inc. FCFE decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Cisco Systems Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	4,049,187,080
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	17,938)
FCFE per share	4.43
Current share price (P)	47.86
Valuation Ratio
P/FCFE	10.80
Benchmarks
P/FCFE, Competitors¹
Apple Inc.	29.15
Arista Networks Inc.	41.39
Super Micro Computer Inc.	147.00
P/FCFE, Sector
Technology Hardware & Equipment	26.73
P/FCFE, Industry
Information Technology	41.64

Based on: 10-K (reporting date: 2023-07-29).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Cisco Systems Inc., historical P/FCFE calculation, comparison to benchmarks

	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019	Jul 28, 2018
No. shares of common stock outstanding¹	4,054,857,783	4,108,844,167	4,217,735,917	4,233,425,297	4,245,290,230	4,571,334,136
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	17,938)	10,945)	11,785)	4,645)	13,860)	4,891)
FCFE per share³	4.42	2.66	2.79	1.10	3.26	1.07
Share price^1, 4	56.79	45.37	58.60	40.95	48.42	47.28
Valuation Ratio
P/FCFE⁵	12.84	17.03	20.97	37.32	14.83	44.19
Benchmarks
P/FCFE, Competitors⁶
Apple Inc.	30.63	22.26	23.27	24.40	21.64	14.82
Arista Networks Inc.	41.51	96.71	42.05	32.98	18.04	—
Super Micro Computer Inc.	41.38	139.19	13.82	—	7.81	108.26
P/FCFE, Sector
Technology Hardware & Equipment	27.96	22.09	23.18	25.25	20.13	—
P/FCFE, Industry
Information Technology	33.34	26.56	27.30	23.29	18.92	—

Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 17,938,000,000 ÷ 4,054,857,783 = 4.42

⁴ Closing price as at the filing date of Cisco Systems Inc. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 56.79 ÷ 4.42 = 12.84

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Cisco Systems Inc. P/FCFE ratio decreased from 2021 to 2022 and from 2022 to 2023.

Cisco Systems Inc. (NASDAQ:CSCO)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical