Stock Analysis on Net

Cisco Systems Inc. (NASDAQ:CSCO)

Price to FCFE (P/FCFE) 

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Cisco Systems Inc., FCFE calculation

US$ in millions

Microsoft Excel
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).

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.

Price to FCFE Ratio, Current

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

Microsoft Excel
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) 48.40
Valuation Ratio
P/FCFE 10.93
Benchmarks
P/FCFE, Competitors1
Apple Inc. 30.93
Arista Networks Inc. 44.99
Super Micro Computer Inc. 155.24
P/FCFE, Sector
Technology Hardware & Equipment 28.29
P/FCFE, Industry
Information Technology 43.08

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.


Price to FCFE Ratio, Historical

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

Microsoft Excel
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 price1, 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 33.33 26.59 27.28 23.35 18.93

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.

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.