Cisco Systems Inc., FCFE calculation

US$ in millions

12 months ended:	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
Net income	10,320)	12,613)	11,812)	10,591)	11,214)	11,621)
Net noncash charges	4,858)	2,231)	3,136)	2,879)	3,294)	3,133)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures	(4,298)	5,042)	(1,722)	1,984)	918)	1,077)
Net cash provided by operating activities	10,880)	19,886)	13,226)	15,454)	15,426)	15,831)
Acquisition of property and equipment	(670)	(849)	(477)	(692)	(770)	(909)
Short-term borrowings, original maturities of 90 days or less, net	478)	(602)	606)	(5)	(3,470)	3,446)
Issuances of debt	31,818)	—)	1,049)	—)	—)	2,250)
Repayments of debt	(9,826)	(500)	(3,550)	(3,000)	(6,720)	(6,780)
Repayments of Splunk convertible debt, net of capped call proceeds	(3,140)	—)	—)	—)	—)	—)
Free cash flow to equity (FCFE)	29,540)	17,935)	10,854)	11,757)	4,466)	13,838)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Cisco Systems Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Cisco Systems Inc. FCFE increased from 2022 to 2023 and from 2023 to 2024.

Cisco Systems Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	3,982,758,260
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	29,540)
FCFE per share	7.42
Current share price (P)	57.50
Valuation Ratio
P/FCFE	7.75
Benchmarks
P/FCFE, Competitors¹
Apple Inc.	33.67
Arista Networks Inc.	60.12
Super Micro Computer Inc.	46.31
P/FCFE, Sector
Technology Hardware & Equipment	34.80
P/FCFE, Industry
Information Technology	51.66

Based on: 10-K (reporting date: 2024-07-27).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Cisco Systems Inc., historical P/FCFE calculation, comparison to benchmarks

	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
No. shares of common stock outstanding¹	3,990,734,794	4,054,857,783	4,108,844,167	4,217,735,917	4,233,425,297	4,245,290,230
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	29,540)	17,935)	10,854)	11,757)	4,466)	13,838)
FCFE per share³	7.40	4.42	2.64	2.79	1.05	3.26
Share price^1, 4	49.13	56.79	45.37	58.60	40.95	48.42
Valuation Ratio
P/FCFE⁵	6.64	12.84	17.18	21.02	38.82	14.85
Benchmarks
P/FCFE, Competitors⁶
Apple Inc.	32.77	30.63	22.26	23.27	24.40	21.64
Arista Networks Inc.	—	41.51	96.71	42.05	32.98	18.04
Super Micro Computer Inc.	—	41.38	139.27	13.81	—	7.83
P/FCFE, Sector
Technology Hardware & Equipment	—	27.96	22.10	23.19	25.31	20.14
P/FCFE, Industry
Information Technology	—	33.47	26.69	27.52	23.46	19.14

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 29,540,000,000 ÷ 3,990,734,794 = 7.40

⁴ Closing price as at the filing date of Cisco Systems Inc. Annual Report.

⁵ 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 49.13 ÷ 7.40 = 6.64

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Cisco Systems Inc. P/FCFE ratio decreased from 2022 to 2023 and from 2023 to 2024.

Cisco Systems Inc. (NASDAQ:CSCO)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical