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

Cisco Systems Inc. (NASDAQ:CSCO)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Cisco Systems Inc., FCFE calculation

US$ in millions

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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 
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 
Short-term borrowings, original maturities of 90 days or less, net (3,470) 3,446  (2,502) 2,497  (4) (4)
Issuances of debt —  2,250  6,877  6,980  6,978  4,981 
Repayments of debt (6,720) (6,780) (12,375) (4,151) (3,863) (508)
Free cash flow to equity (FCFE) 4,645  13,860  4,891  18,245  15,576  15,816 

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
FCFE Free cash flow to equity is the cash flow available to Cisco Systems Inc.’s 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.’s FCFE increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to FCFE Ratio, Current

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

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No. shares of common stock outstanding 4,214,204,641
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 4,645 
FCFE per share 1.10
Current share price (P) 55.28
Valuation Ratio
P/FCFE 50.15
Benchmarks
P/FCFE, Competitors1
Apple Inc. 32.28
P/FCFE, Sector
Technology Hardware & Equipment 33.32
P/FCFE, Industry
Information Technology 32.24

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

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.


Price to FCFE Ratio, Historical

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

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Jul 25, 2020 Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015
No. shares of common stock outstanding1 4,233,425,297 4,245,290,230 4,571,334,136 4,951,955,851 5,014,353,833 5,061,293,291
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 4,645  13,860  4,891  18,245  15,576  15,816 
FCFE per share3 1.10 3.26 1.07 3.68 3.11 3.12
Share price1, 4 40.95 48.42 47.28 31.76 31.47 26.30
Valuation Ratio
P/FCFE5 37.32 14.83 44.19 8.62 10.13 8.42
Benchmarks
P/FCFE, Competitors6
Apple Inc. 24.40 21.64 14.82 11.05 8.20 6.70
P/FCFE, Sector
Technology Hardware & Equipment 25.14 20.19 16.89 10.60 8.53
P/FCFE, Industry
Information Technology 24.34 20.00 22.38 12.35 11.06

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 Data adjusted for splits and stock dividends.

2 See details »

3 2020 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 4,645,000,000 ÷ 4,233,425,297 = 1.10

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

5 2020 Calculation
P/FCFE = Share price ÷ FCFE per share
= 40.95 ÷ 1.10 = 37.32

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Cisco Systems Inc.’s P/FCFE ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.