Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Cisco Systems Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-07-27), 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).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Cisco Systems Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Cisco Systems Inc. FCFF increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
Interest Paid, Net of Tax
Cisco Systems Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-07-27), 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).
2 2024 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 583 × 15.60% = 91
Enterprise Value to FCFF Ratio, Current
Cisco Systems Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 240,165) |
| Free cash flow to the firm (FCFF) | 10,702) |
| Valuation Ratio | |
| EV/FCFF | 22.44 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Apple Inc. | 32.10 |
| Arista Networks Inc. | 56.98 |
| Super Micro Computer Inc. | 19.66 |
| EV/FCFF, Sector | |
| Technology Hardware & Equipment | 30.74 |
| EV/FCFF, Industry | |
| Information Technology | 52.79 |
Based on: 10-K (reporting date: 2024-07-27).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Cisco Systems Inc., historical EV/FCFF calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 209,173) | 212,520) | 176,666) | 234,167) | 158,523) | 196,810) | |
| Free cash flow to the firm (FCFF)2 | 10,702) | 19,346) | 13,039) | 15,112) | 15,140) | 15,643) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 19.55 | 10.98 | 13.55 | 15.50 | 10.47 | 12.58 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Apple Inc. | 31.36 | 27.21 | 22.40 | 26.45 | 24.67 | 18.01 | |
| Arista Networks Inc. | — | 39.01 | 89.96 | 38.46 | 28.99 | 15.17 | |
| Super Micro Computer Inc. | — | 21.06 | — | 25.04 | — | 3.79 | |
| EV/FCFF, Sector | |||||||
| Technology Hardware & Equipment | — | 24.85 | 21.85 | 25.07 | 22.39 | 16.86 | |
| EV/FCFF, Industry | |||||||
| Information Technology | — | 34.32 | 27.25 | 28.19 | 24.28 | 19.87 | |
Based on: 10-K (reporting date: 2024-07-27), 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).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 209,173 ÷ 10,702 = 19.55
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | Cisco Systems Inc. EV/FCFF ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |