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
DCF Fair Value Target:
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 45th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Cisco Systems Inc ended up being:
The company has produced more trailing twelve month cash flow than 95.89% of its sector Technology.
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately merely 19.12% 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 2%; for context, that number is higher than 41.11% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FIVN, ADI, TTWO, OSIS, and TEAM 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.
A California agency's lawsuit accusing Cisco Systems Inc of tolerating Indian workers' harassment of an Indian colleague who comes from a lower caste could trigger a reckoning in the tech industry, which disproportionately hires work-visa holders from India, experts said.
When it comes to dividend investing, the tech sector often doesn't rank very high. While technology companies are usually more concerned with innovative growth, and dividend yields are on average far lower than other areas of the market, oft-overlooked tech names that dole out a dividend have some key advantages. Three tech dividend stocks chosen by Fool.com contributors for the month of August are Taiwan Semiconductor (NYSE: TSM), Cisco Systems (NASDAQ: CSCO), and Applied Materials (NASDAQ: AMAT).
Cisco has scheduled a conference call for Wednesday, August 12, 2020, at 1:30 PM (PT); 4:30 PM (ET) to announce its fourth quarter and fiscal year 2020 financial results for the period ending Saturday, July 25, 2020.