Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Cisco Systems Inc. (NASDAQ:CSCO)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level


Free Cash Flow to The Firm (FCFF)

Cisco Systems Inc., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jul 25, 2020 Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015
Net income 11,214  11,621  110  9,609  10,739  8,981 
Net noncash charges 3,294  3,133  4,212  3,681  2,959  3,607 
Change in operating assets and liabilities, net of effects of acquisitions and divestitures 918  1,077  9,344  586  (128) (36)
Net cash provided by operating activities 15,426  15,831  13,666  13,876  13,570  12,552 
Cash paid for interest, net of tax1 484  721  736  701  714  610 
Acquisition of property and equipment (770) (909) (834) (964) (1,146) (1,227)
Proceeds from sales of property and equipment 179  22  59  41  22 
Free cash flow to the firm (FCFF) 15,319  15,665  13,627  13,620  13,179  11,957 

Based on: 10-K (filing date: 2020-09-03), 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Cisco Systems Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Cisco Systems Inc.’s FCFF increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Interest Paid, Net of Tax

Cisco Systems Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jul 25, 2020 Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015
Effective Income Tax Rate (EITR)
EITR1 19.70% 14.10% 19.10% 21.80% 16.90% 19.80%
Interest Paid, Net of Tax
Cash paid for interest, before tax 603  839  910  897  859  760 
Less: Cash paid for interest, tax2 119  118  174  196  145  150 
Cash paid for interest, net of tax 484  721  736  701  714  610 

Based on: 10-K (filing date: 2020-09-03), 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08).

1 See details »

2 2020 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 603 × 19.70% = 119


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 153,697 
Free cash flow to the firm (FCFF) 15,319 
Valuation Ratio
EV/FCFF 10.03
Benchmarks
EV/FCFF, Competitors1
Advanced Micro Devices Inc. 259.51
Analog Devices Inc. 21.73
Apple Inc. 29.70
Applied Materials Inc. 17.73
Broadcom Inc. 16.71
Intel Corp. 12.84
Lam Research Corp. 21.14
Micron Technology Inc. 16.08
NVIDIA Corp. 67.53
Qualcomm Inc. 19.11
Texas Instruments Inc. 21.46
EV/FCFF, Sector
Technology Hardware & Equipment 24.23
EV/FCFF, Industry
Technology 27.59

Based on: 10-K (filing date: 2020-09-03).

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.


Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel LibreOffice Calc
Jul 25, 2020 Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 158,523  196,810  195,154  120,499  120,688  98,059 
Free cash flow to the firm (FCFF)2 15,319  15,665  13,627  13,620  13,179  11,957 
Valuation Ratio
EV/FCFF3 10.35 12.56 14.32 8.85 9.16 8.20
Benchmarks
EV/FCFF, Competitors4
Advanced Micro Devices Inc. 169.58 770.71 121.45
Analog Devices Inc. 21.68 16.04 36.93 16.91 21.52
Apple Inc. 18.01 15.09 17.59 11.77 9.77
Applied Materials Inc. 18.91 9.96 15.58 15.02 20.88
Broadcom Inc. 14.91 12.67 18.68 28.10 20.50
Intel Corp. 17.38 15.50 20.45 14.08 11.01
Lam Research Corp. 25.87 9.83 10.36 11.51 9.72 15.85
Micron Technology Inc. 14.33 5.37 17.38 21.31
NVIDIA Corp. 41.64 27.83 47.75 37.50 12.85 11.58
Qualcomm Inc. 14.91 22.53 14.89 12.58 18.64
Texas Instruments Inc. 20.75 16.49 21.57 18.62 14.16
EV/FCFF, Sector
Technology Hardware & Equipment 17.41 15.25 17.37 13.52 10.86
EV/FCFF, Industry
Technology 21.26 19.17 19.36 15.65 14.15

Based on: 10-K (filing date: 2020-09-03), 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08).

1 See details »

2 See details »

3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 158,523 ÷ 15,319 = 10.35

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Cisco Systems Inc.’s EV/FCFF ratio decreased from 2018 to 2019 and from 2019 to 2020.