Cisco Systems, Inc. (CSCO): Price and Financial Metrics

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CSCO Price/Volume Stats

Cisco Systems, Inc. (CSCO) Company Bio

Cisco Systems designs, manufactures, and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide. The company was founded in 1984 and is based in San Jose, California.

CSCO Price Forecast Based on DCF Valuation

The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Cisco Systems Inc. To summarize, we found that Cisco Systems Inc ranked in the 40th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for CSCO, they are:

• The compound growth rate in the free cash flow of Cisco Systems Inc over the past 5.45 years is 0.05%; that's better than merely 20.54% of cash flow producing equities in the Technology sector, where it is classified.
• The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately only 20.75% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• CSCO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 40.7% of tickers in our DCF set.

BKTI, IPHI, MSI, OMCL, and ROG can be thought of as valuation peers to CSCO, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.