Cisco Systems Inc., FCFF 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)
Cash paid for interest, net of tax¹	309)	290)	350)	484)	721)	736)
Acquisition of property and equipment	(849)	(477)	(692)	(770)	(909)	(834)
Proceeds from sales of property and equipment	3)	91)	28)	179)	22)	59)
Free cash flow to the firm (FCFF)	19,349)	13,130)	15,140)	15,319)	15,665)	13,627)

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
FCFF	Free cash flow to the firm is the cash flow available to the Cisco Systems Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Cisco Systems Inc. FCFF decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Cisco Systems Inc., interest paid, net of tax 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
Effective Income Tax Rate (EITR)
EITR¹	17.70%	18.40%	20.10%	19.70%	14.10%	19.10%
Interest Paid, Net of Tax
Cash paid for interest, before tax	376)	355)	438)	603)	839)	910)
Less: Cash paid for interest, tax²	67)	65)	88)	119)	118)	174)
Cash paid for interest, net of tax	309)	290)	350)	484)	721)	736)

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 See details »

² 2023 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 376 × 17.70% = 67

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Cisco Systems Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	176,039)
Free cash flow to the firm (FCFF)	19,349)
Valuation Ratio
EV/FCFF	9.10
Benchmarks
EV/FCFF, Competitors¹
Apple Inc.	25.92
Arista Networks Inc.	38.88
Super Micro Computer Inc.	75.40
EV/FCFF, Sector
Technology Hardware & Equipment	23.77
EV/FCFF, Industry
Information Technology	42.64

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

¹ Click competitor name to see calculations.

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

Cisco Systems Inc., historical EV/FCFF calculation, comparison to benchmarks

	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019	Jul 28, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	212,520)	176,666)	234,167)	158,523)	196,810)	195,154)
Free cash flow to the firm (FCFF)²	19,349)	13,130)	15,140)	15,319)	15,665)	13,627)
Valuation Ratio
EV/FCFF³	10.98	13.46	15.47	10.35	12.56	14.32
Benchmarks
EV/FCFF, Competitors⁴
Apple Inc.	27.21	22.40	26.45	24.67	18.01	15.09
Arista Networks Inc.	39.01	89.96	38.46	28.99	15.17	—
Super Micro Computer Inc.	21.05	—	25.07	—	3.78	18.10
EV/FCFF, Sector
Technology Hardware & Equipment	24.85	21.83	25.06	22.35	16.86	—
EV/FCFF, Industry
Information Technology	34.25	27.01	27.93	24.12	19.69	—

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 See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 212,520 ÷ 19,349 = 10.98

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Cisco Systems Inc. EV/FCFF ratio decreased from 2021 to 2022 and from 2022 to 2023.

Cisco Systems Inc. (NASDAQ:CSCO)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical