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Cisco Systems (NEOE:CSCO) Cyclically Adjusted FCF per Share : C$1.80 (As of Apr. 2024)


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What is Cisco Systems Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

Cisco Systems's adjusted free cash flow per share for the three months ended in Apr. 2024 was C$1.281. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is C$1.80 for the trailing ten years ended in Apr. 2024.

During the past 12 months, Cisco Systems's average Cyclically Adjusted FCF Growth Rate was 3.80% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 10.30% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 9.60% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 7.80% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Cisco Systems was 44.20% per year. The lowest was 6.20% per year. And the median was 10.65% per year.

As of today (2024-05-24), Cisco Systems's current stock price is C$23.42. Cisco Systems's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2024 was C$1.80. Cisco Systems's Cyclically Adjusted Price-to-FCF of today is 13.01.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Cisco Systems was 24.74. The lowest was 11.92. And the median was 15.53.


Cisco Systems Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Cisco Systems's Cyclically Adjusted FCF per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cisco Systems Cyclically Adjusted FCF per Share Chart

Cisco Systems Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 1.65 1.79

Cisco Systems Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Cyclically Adjusted FCF per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.74 1.79 1.79 1.77 1.80

Competitive Comparison of Cisco Systems's Cyclically Adjusted FCF per Share

For the Communication Equipment subindustry, Cisco Systems's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cisco Systems's Cyclically Adjusted Price-to-FCF Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Cisco Systems's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Cisco Systems's Cyclically Adjusted Price-to-FCF falls into.



Cisco Systems Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Cisco Systems's adjusted Free Cash Flow per Share data for the three months ended in Apr. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Apr. 2024 (Change)*Current CPI (Apr. 2024)
=1.281/131.7762*131.7762
=1.281

Current CPI (Apr. 2024) = 131.7762.

Cisco Systems Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201407 0.680 100.520 0.891
201410 0.480 100.176 0.631
201501 0.615 98.604 0.822
201504 0.643 99.824 0.849
201507 0.959 100.691 1.255
201510 0.640 100.346 0.840
201601 1.006 99.957 1.326
201604 0.698 100.947 0.911
201607 0.915 101.524 1.188
201610 0.642 101.988 0.830
201701 0.921 102.456 1.185
201704 0.837 103.167 1.069
201707 0.957 103.278 1.221
201710 0.735 104.070 0.931
201801 0.974 104.578 1.227
201804 0.572 105.708 0.713
201807 1.053 106.324 1.305
201810 1.001 106.695 1.236
201901 1.044 106.200 1.295
201904 1.243 107.818 1.519
201907 1.142 108.250 1.390
201910 1.045 108.577 1.268
202001 1.109 108.841 1.343
202004 1.346 108.173 1.640
202007 1.144 109.318 1.379
202010 1.222 109.861 1.466
202101 0.838 110.364 1.001
202104 1.093 112.673 1.278
202107 1.285 115.183 1.470
202110 0.969 116.696 1.094
202201 0.706 118.619 0.784
202204 1.077 121.978 1.164
202207 1.101 125.002 1.161
202210 1.259 125.734 1.319
202301 1.490 126.223 1.556
202304 1.624 127.992 1.672
202307 1.853 128.974 1.893
202310 0.751 129.810 0.762
202401 0.210 130.124 0.213
202404 1.281 131.776 1.281

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Cisco Systems  (NEOE:CSCO) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Cisco Systems's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=23.42/1.8
=13.01

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Cisco Systems was 24.74. The lowest was 11.92. And the median was 15.53.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Cisco Systems Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of Cisco Systems's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Cisco Systems (NEOE:CSCO) Business Description

Industry
Address
170 West Tasman Drive, San Jose, CA, USA, 95134-1706
Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.