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Cisco Systems (Cisco Systems) Cyclically Adjusted Price-to-FCF : 13.75 (As of Apr. 28, 2024)


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What is Cisco Systems Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), Cisco Systems's current share price is $47.86. Cisco Systems's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was $3.48. Cisco Systems's Cyclically Adjusted Price-to-FCF for today is 13.75.

The historical rank and industry rank for Cisco Systems's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

CSCO' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 11.92   Med: 15.53   Max: 24.74
Current: 13.75

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

CSCO's Cyclically Adjusted Price-to-FCF is ranked better than
77.86% of 953 companies
in the Hardware industry
Industry Median: 27.98 vs CSCO: 13.75

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 adjusted free cash flow per share data for the three months ended in Jan. 2024 was $0.157. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $3.48 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Cisco Systems Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Cisco Systems's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

Cisco Systems Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.77 18.00 18.97 14.03 14.79

Cisco Systems Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted Price-to-FCF 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 14.57 13.74 14.79 14.73 14.42

Competitive Comparison of Cisco Systems's Cyclically Adjusted Price-to-FCF

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 Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=47.86/3.48
=13.75

* 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.

Cisco Systems's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.157/129.4194*129.4194
=0.157

Current CPI (Jan. 2024) = 129.4194.

Cisco Systems Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.545 100.023 0.705
201407 0.633 100.520 0.815
201410 0.428 100.176 0.553
201501 0.507 98.604 0.665
201504 0.521 99.824 0.675
201507 0.745 100.691 0.958
201510 0.490 100.346 0.632
201601 0.708 99.957 0.917
201604 0.545 100.947 0.699
201607 0.701 101.524 0.894
201610 0.485 101.988 0.615
201701 0.699 102.456 0.883
201704 0.623 103.167 0.782
201707 0.754 103.278 0.945
201710 0.583 104.070 0.725
201801 0.784 104.578 0.970
201804 0.449 105.708 0.550
201807 0.802 106.324 0.976
201810 0.770 106.695 0.934
201901 0.785 106.200 0.957
201904 0.929 107.818 1.115
201907 0.871 108.250 1.041
201910 0.792 108.577 0.944
202001 0.848 108.841 1.008
202004 0.958 108.173 1.146
202007 0.847 109.318 1.003
202010 0.925 109.861 1.090
202101 0.658 110.364 0.772
202104 0.875 112.673 1.005
202107 1.026 115.183 1.153
202110 0.779 116.696 0.864
202201 0.559 118.619 0.610
202204 0.853 121.978 0.905
202207 0.851 125.002 0.881
202210 0.920 125.734 0.947
202301 1.110 126.223 1.138
202304 1.204 127.992 1.217
202307 1.403 128.974 1.408
202310 0.547 129.810 0.545
202401 0.157 129.419 0.157

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


Cisco Systems  (NAS:CSCO) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Cisco Systems Cyclically Adjusted Price-to-FCF Related Terms

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


Cisco Systems (Cisco Systems) 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.
Executives
Richard Scott Herren officer: EVP and CFO 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309
Maria Victoria Wong officer: SVP & Chief Acctg Officer C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Deborah L Stahlkopf officer: EVP and Chief Legal Officer C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Jeffery S. Sharritts officer: EVP & Chief Cust & Prtnr Offcr 1200 ABERNATHY RD., NE, STE 1200, ATLANTA GA 30328
Mark Garrett director 106 EAST BABCOCK STREET SUITE 3A, BOZEMAN MT 59715
Maria Martinez officer: EVP, Chief Customer Exp Offcr THE LANDMARK @ 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105
Charles Robbins officer: SVP, Worldwide Sales 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Daniel H Schulman director C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Roderick C Mcgeary director 1421 MCCRTHY BLVD, MILPITAS CA 95035
Prat Bhatt officer: VP, Corporate Controller & PAO 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Kristina M Johnson director 19 HEATH PL, DURHAM NC 27705
Sarah Rae Murphy director C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Geraldine Elliott officer: EVP, Chief Sales & Mktg Offcr 1194 N. MATHILDA AVE., SUNNYVALE CA 94089
M Michele Burns director C/O MARSH &MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036-2774
Mark D Chandler officer: SVP, LglSrvs, GenCnsl & Secty 170 W TASMAN DRIVE, SAN JOSE CA 95134