CSCO — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($79.46)
DCF	$194.97	+145.4%
Graham Number	$27.49	-65.4%
Reverse DCF	—	implied g: 15.6%
DDM	$34.61	-56.4%
EV/EBITDA	$79.46	+0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $10.13B

Near-term growth (yrs 1–5)(%)Rev: 9.7% / EPS: 31.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.23%

Computed WACC: 8.23%

Cost of equity (Re)9.06%(Rf 4.30% + β 0.86 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)90.82%

Debt weight (D/V)9.18%

Results

Intrinsic Value / share$227.67

Current Price$79.46

Upside / Downside+186.5%

Net Debt (used)$15.96B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	23.2%	27.2%	31.2%	35.2%	39.2%
7.0%	$222.83	$260.90	$303.98	$352.57	$407.17
8.0%	$175.55	$205.45	$239.28	$277.41	$320.25
9.0%	$143.16	$167.47	$194.97	$225.94	$260.73
10.0%	$119.67	$139.94	$162.85	$188.65	$217.61
11.0%	$101.93	$119.15	$138.60	$160.50	$185.06

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $2.78

Book Value / share($)Yahoo: $12.09

Results

Graham Number$27.49

Current Price$79.46

Margin of Safety-65.4%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.23%

Terminal growth rate(%)

Computed WACC: 8.23%

Cost of equity (Re)9.06%(Rf 4.30% + β 0.86 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)90.82%

Debt weight (D/V)9.18%

Results

Current Price$79.46

Implied Near-term FCF Growth13.2%

Historical Revenue Growth9.7%

Historical Earnings Growth31.2%

Base FCF (TTM)$10.13B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $1.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$34.61

Current Price$79.46

Upside / Downside-56.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $16.29B

Target EV/EBITDA multipleCurrent: 20.2×

Net Debt($B)Default: $15.96B

Results

Implied Equity Value / share$79.46

Current Price$79.46

Upside / Downside+0.0%

Implied EV$329.83B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$7.96B	$11.96B	$15.96B	$19.96B	$23.96B
16.2x	$64.99	$63.98	$62.96	$61.95	$60.94
18.2x	$73.24	$72.23	$71.21	$70.20	$69.19
20.2x	$81.49	$80.47	$79.46	$78.45	$77.44
22.2x	$89.74	$88.72	$87.71	$86.70	$85.69
24.2x	$97.98	$96.97	$95.96	$94.95	$93.93

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