Cisco Systems, Inc. (CSCO) DCF Valuation
Two independent models estimate Cisco Systems, Inc.'s fair value between $49.52 (conservative case) and $52.50 (analyst consensus).
What would today's price require?
$119.31 is justified only if free cash flow grows about +15.5% a year for the next decade — faster than the company has actually grown.
Current Price
$119.31
Fair-Value Range
$49.52 – $52.50
Market-Implied Growth
+15.5%/yr
vs -2.5% 5Y actual
CSCO DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $13.8B · 3.94B shares · net debt $19.7B
Estimated Fair Value
$52.50
-56.0% vs $119.31
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $119.31; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $66.46 | $70.13 | $74.46 | $79.66 | $86.01 |
| 9.0% | $56.38 | $58.89 | $61.78 | $65.15 | $69.14 |
| 10.0% | $48.70 | $50.48 | $52.50 | $54.81 | $57.47 |
| 11.0% | $42.66 | $43.97 | $45.43 | $47.07 | $48.93 |
| 12.0% | $37.80 | $38.78 | $39.86 | $41.07 | $42.41 |
About Cisco Systems, Inc.
Cisco Systems, Inc. is a leading global technology company focused on designing, producing, and marketing Internet Protocol (IP)-based networking equipment, software, and associated products within the communications and information technology industries. The company operates extensively across major regions including the Americas, Europe, the Middle East, Africa, and the Asia Pacific, specifically covering Japan and China. Its comprehensive product lineup features switching solutions for both enterprise campuses and data centers. Cisco's enterprise routing segment is crucial for securely and reliably interconnecting public, private, wired, and mobile networks, ensuring vital connectivity across corporate campuses, data centers, and branch offices. Additionally, the company provides a range of wireless products offering seamless indoor and outdoor roaming for voice, video, and data applications. Security forms a significant pillar of its offerings, encompassing network defense, identity and access management, secure access service edge (SASE), alongside threat intelligence, detection, and response capabilities. For collaboration, Cisco delivers the Webex Suite, dedicated devices, contact center platforms, and communication platform-as-a-service (CPaaS). These end-to-end collaboration solutions are adaptable, available in cloud, on-premise, or hybrid environments, facilitating clients' migration to cloud-based systems. Moreover, their observability suite provides network assurance, monitoring, and analytics. Beyond its product portfolio, Cisco offers extensive customer support and services, including technical assistance, advanced professional services, and advisory consulting. The company serves a broad clientele, from small and large businesses to public institutions, governmental agencies, and service providers. Products and services are distributed directly by Cisco, as well as through a diverse network of system integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. also engages in strategic collaborations with other industry players. Founded in 1984, the company is headquartered in San Jose, California.
- Sector
- Technology
- Industry
- Communication Equipment
- CEO
- Charles H. Robbins