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DCF valuation

What is Cisco Systems, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Cisco Systems, Inc.'s reported free cash flow gives $55.09 per share. The share price was $106.70 on September 25, 2026, 94% above that value.

Inputs from the filings

Free cash flow, fiscal 2026
$12.77B
Average free cash flow, last 5 years
$13.61B
Cash
$7.22B
balance sheet of July 25, 2026
Debt
$22.87B
balance sheet of July 25, 2026
Diluted shares, fiscal 2026
3,987,000,000
Revenue growth per year, last 5 years
4.9%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear0.0%1.0%2.0%10.0%$32.51-70%
Base5.0%4.0%2.5%9.0%$55.09-48%
Bull10.0%6.5%3.0%8.0%$97.25-9%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$71.24$76.16$82.17$89.68$99.34
8.0%$59.20$62.39$66.16$70.68$76.21
9.0%$50.39$52.57$55.09$58.02$61.49
10.0%$43.68$45.23$46.99$48.99$51.31
11.0%$38.39$39.53$40.80$42.23$43.85

Where the presets come from

Base: years 1 to 5 grow at Cisco Systems, Inc.'s revenue growth rate over the last 5 fiscal years (4.9% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Cisco Systems, Inc. company page