Premium Essay

Cisco Multiple Valuation

In: Business and Management

Submitted By WBajouda
Words 584
Pages 3
12 months
Jul-27-2013 | Cisco | | in millions | | Total Assets | 101,191.00 | Total Liabilities | 42,063.00 | Goodwill | 21,919.00 | Other Intangible assets | 3,403.00 | Book value | 33,806.00 | | | Total outstanding shares | 5,351 | Book value/outstanding shares | 6.32 | | | Total Revenue | 48,816.00 | |

TEV/ LTM REVENUE | | | | | Total revenue (in millions) | | Estimated TEV | HPQ | 0.49x | 0.49 | High | 1.8 | 48,816.00 | | 87868.8 | JNPR | 1.80x | 1.8 | Average | 1.09 | 48,816.00 | | 53209.4 | ALU | 0.55x | 0.55 | Low | 0.49 | 48,816.00 | | 23919.8 | BRCD | 1.52x | 1.52 | | | | | | FFIV | 4.18x | 4.18 | | | | | | | | | | | | | | Estimated TEV | Debt | | Equity value | | outstanding shares | | estimated P | 87868.8 | 16211 | | 71657.8 | | 5380 | | 13.31929368 | 53209.4 | 16211 | | 36998.4 | | 5380 | | 6.877033457 | 23919.8 | 16211 | | 7708.84 | | 5380 | | 1.432869888 | | | | | | | | | EV/EBITDA | | | | | EBITDA | | estimated EV | HPQ | 3.82 | | High | 9.26 | 14161.00 | | 131130.86 | JNPR | 9.26 | | Average | 6.61 | 14161.00 | | 93533.405 | ALU | 7.22 | | Low | 3.82 | 14161.00 | | 54095.02 | BRCD | 6.12 | | | | | | | FFIV | 13.19 | | | | | | | | | | | | | | | estimated EV | Debt | | Equity value | | outstanding shares | | estimated P | 131130.86 | 16211 | | 114920 | | 5380 | | 21.36056877 | 93533.405 | 16211 | | 77322.4 | | 5380 | | 14.37219424 | 54095.02 | 16211 | | 37884 | | 5380 | | 7.041639405 | | | | | | | | | | | | | | | | estimated P | P/BV | | | | | B/outstanding shares | | 28.68234722 | HPQ | 1.83x | 1.83 | High | 4.54 | 6.32 | | 14.72023547 | JNPR | 1.37x | 1.37 | Average | 2.33 | 6.32 | | 8.655245748 | ALU | 4.54x | 4.54 | Low | 1.37 | 6.32 | | |...

Similar Documents

Premium Essay

Cisco Analyzing

...Cisco System, Inc Cisco System, Inc SMIF Stock Report Information Technology – Communication Equipment Analyst: Thanh Nguyen Date 12.04.13 Ticker: ●CSCO Recommendation: ● HOLD Price: ● 21.24 (as of 12.04.13) Price Target: ● 21.74 Highlights * HOLD Recommendation: Cisco’s expected revenues for the coming quarter will be down 8 to 10% because of weak demand in emerging markets. However, the company had high earnings, and was consistently increasing revenues over recent years. It is a large-cap growth company in the technology sector and is expected to outperform the emerging markets over the next years. * Strong Financial Position: Cisco has solid fundamentals with consistent growth, high margins, and a strong balance sheet. Its gross profit margin is mostly higher than 60%, and blows away that of the S&P 500 average (around 44%). Since 2009, Cisco has kept increasing sales. It has a very strong balance sheet with more than $50 billion in cash and cash equivalents in 2013, which is higher than the total of debt ($42 billion). Besides, it has a good asset management, which has maintained to keep inventories low over years with an average of 2% of total assets. Further, Cisco commits to return a minimum of 50 percent of its free cash flow to shareholders in the forms of both dividends and share repurchases. Cisco generates a healthy amount of cash of about $10 billion to $12 billion annually in operating cash flow, it will have room to deliver...

Words: 4742 - Pages: 19

Free Essay

Cisco System

...Cisco Systems, Inc. 2011 Annual Report Annual Report 2011 Letter to Shareholders To Our Shareholders, Fiscal 2011 was one of the most transformative years we have seen at Cisco. We prioritized, simplified, and took action to drive Cisco’s continued market leadership. We aggressively changed the way we do business to become a faster and more agile partner, with the goal continuing to be to increase our ability to deliver unique value to our shareholders, customers, partners, and employees. Throughout our transformation, we continued to execute as we grew fiscal year revenue to over $43 billion. More importantly, we laid the groundwork needed to position Cisco for the next stage of growth and profitability. We believe the network will continue to grow in importance and could become our customers’ most strategic information technology (IT) asset. We will continue to develop technologies, services, and software platforms that enable our customers to leverage the network to solve their greatest business challenges, which in turn will drive, in our view, greater customer and shareholder value for Cisco and also solidify our leadership position in an ever-evolving networkcentric world. In this current environment, we are fortunate to be a company built on a number of tremendous strengths. From a technology standpoint, innovation and customer support have remained Cisco hallmarks, and we have built the most trusted brand in networking, as evident by our continuing market......

Words: 77999 - Pages: 312

Free Essay

Presentation

...presGRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY CASE NUMBER: EC-15 FEBRUARY 2000 CISCO SYSTEMS: A NOVEL APPROACH TO STRUCTURING ENTREPRENEURIAL VENTURES Mike Volpi, vice president of business development at Cisco Systems, was in his office in San Jose at Cisco’s headquarters on June 27, 1997. He was considering a set of strategic questions that he had faced many times since joining Cisco’s business development group in 1994. Volpi’s colleagues had recently identified a new networking opportunity in optical routers, and Volpi wondered how Cisco should pursue the opportunity. Should Cisco develop the product internally, or should they pursue external talent that was more familiar with the technology and market segment? If the external route was the best strategy to get the right product to market on time, should Cisco build its own external venture – or just acquire somebody outright? NETWORKING OPPORTUNITY: PIPELINKS For the previous two years, Cisco had been preaching about the promise of a multiservice network – a single network capable of transporting data, voice, and video. Cisco’s service provider customers agreed that network convergence would ultimately improve cost effectiveness and allow them to expand their service offerings. However, most service providers were saddled with huge investments in their existing circuit-based voice networks. This situation implied a market need for optical (Sonet/SDH) routers that leveraged the existing infrastructure while......

Words: 9533 - Pages: 39

Free Essay

Financial Analysis

...Fourth Edition Financial Statement Analysis & Valuation Peter D. Easton University of Notre Dame Mary Lea McAnally Texas A&M University Gregory A. Sommers Southern Methodist University Xiao-Jun Zhang University of California, Berkeley Cambridge Business Publishers To my daughters, Joanne and Stacey —PDE To my husband Brittan, and my children Loic, Maclean, Quinn and Kay —MLM To my wife Susan, and my children Christian, Peter and Philip —GAS To my wife Sharon, my daughter Jasmine, and my parents 滕惠清 and 张祥林 —XZ Financial Statement Analysis & Valuation, Fourth Edition, by Peter D. Easton, Mary Lea McAnally, Gregory A. Sommers, and Xiao-Jun Zhang. COPYRIGHT © 2015 by Cambridge Business Publishers, LLC. Published by Cambridge Business Publishers, LLC. Exclusive rights by Cambridge Business Publishers, LLC for manufacture and export. ALL RIGHTS RESERVED. No part of this publication may be reproduced, distributed, or stored in a database or retrieval system in any form or by any means, without prior written consent of Cambridge Business Publishers, LLC, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Student Edition ISBN 978-1-61853-104-9 Bookstores & Faculty: to order this book, call 800-619-6473 or email customerservice@cambridgepub.com. Students: to order this book, please visit the book’s Website and order directly online. Printed......

Words: 28387 - Pages: 114

Premium Essay

Interview Questions

...Interview Questions This page is here to help us all be prepared for the types of questions that are typically asked during an interview. We have tried to break them down into the categories listed below as best as possible. Personal Questions - Finance Questions - Accounting Questions - Other Questions [pic] Personal Questions Q. Spend 5 minutes and walk me through your resume. A. The first question you will most likely be asked. On the surface it seems like an easy question, but you will need to be clear and concise with your response. This is something you will need to practice repeatedly so that you can SUCCINCTLY talk about yourself and relate your background to the job. Try to start after you finished undergrad. and talk about: Each position you have held, your role and responsibilities (try to highlight ones that match the job), and what you liked about that work. You want to work your way up to attending Emory. Q. Why do you want to work in Investment Banking/Sales & Trading / Research/ PCS? A. Probably the second question you will be asked. This is probably the most important question you will have to answer. You should be able to relate experiences in your job and interests that match the job you are interviewing for. This is a question that you need to have a rehearsed 2-minute response. Your answer should end along the line "and that’s why I want to go into Investment Banking." How can you relate your background if you didn’t used to work in the......

Words: 3974 - Pages: 16

Premium Essay

Aapl Valuation

...FBE-529 FINANCIAL ANALYSIS AND VALUATION Final Valuation Project Apple Inc. (AAPL) Jeffrey Bullock Zefu Chen Xiangyu Shi Xuezhou Xiao 4/24/2012 Company Analysis Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include the iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a variety of accessory, service and support offerings. It also sells and delivers digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store. The Company sells its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In addition, the Company sells a variety of third-party iPhone, iPad, Mac and iPod compatible products and various other accessories and peripherals through its online and retail stores. The Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and......

Words: 8583 - Pages: 35

Premium Essay

Damodaran

...Aswath Damodaran INVESTMENT VALUATION: SECOND EDITION Chapter 1: Introduction to Valuation Chapter 2: Approaches to Valuation Chapter 3: Understanding Financial Statements Chapter 4: The Basics of Risk Chapter 5: Option Pricing Theory and Models Chapter 6: Market Efficiency: Theory and Models Chapter 7: Riskless Rates and Risk Premiums Chapter 8: Estimating Risk Parameters and Costs of Financing Chapter 9: Measuring Earnings Chapter 10: From Earnings to Cash Flows Chapter 11: Estimating Growth Chapter 12: Closure in Valuation: Estimating Terminal Value Chapter 13: Dividend Discount Models Chapter 14: Free Cashflow to Equity Models Chapter 15: Firm Valuation: Cost of Capital and APV Approaches Chapter 16: Estimating Equity Value Per Share Chapter 17: Fundamental Principles of Relative Valuation Chapter 18: Earnings Multiples Chapter 19: Book Value Multiples Chapter 20: Revenue and Sector-Specific Multiples 3 16 37 81 121 152 211 246 311 341 373 425 450 487 533 593 637 659 718 760 Chapter 21: Valuing Financial Service Firms Chapter 22: Valuing Firms with Negative Earnings Chapter 23: Valuing Young and Start-up Firms Chapter 24: Valuing Private Firms Chapter 25: Acquisitions and Takeovers Chapter 26: Valuing Real Estate Chapter 27: Valuing Other Assets Chapter 28: The Option to Delay and Valuation Implications Chapter 29: The Option to Expand and Abandon: Valuation Implications Chapter 30: Valuing Equity in Distressed Firms Chapter 31: Value Enhancement: A Discounted......

Words: 118369 - Pages: 474

Premium Essay

Is Enron Overpriced

...Fortune FORTUNE 500 Current Issue Subscribe to Fortune It's in a bunch of complex businesses. Its financial statements are nearly impenetrable. So why is Enron trading at such a huge multiple? By Bethany McLean March 5, 2001 NEW YORK (FORTUNE) -- In Hollywood parlance, the "It Girl" is someone who commands the spotlight at any given moment -- you know, like Jennifer Lopez or Kate Hudson. Wall Street is a far less glitzy place, but there's still such a thing as an "It Stock." Right now, that title belongs to Enron, the Houston energy giant. While tech stocks were bombing at the box office last year, fans couldn't get enough of Enron, whose shares returned 89%. By almost every measure, the company turned in a virtuoso performance: Earnings increased 25%, and revenues more than doubled, to over $100 billion. Not surprisingly, the critics are gushing. "Enron has built unique and, in our view, extraordinary franchises in several business units in very large markets," says Goldman Sachs analyst David Fleischer. Along with "It" status come high multiples and high expectations. Enron now trades at roughly 55 times trailing earnings. That's more than 2 1/2 times the multiple of a competitor like Duke Energy, more than twice that of the S&P 500, and about on a par with new-economy sex symbol Cisco Systems. Enron has an even higher opinion of itself. At a late-January meeting with analysts in Houston, the company declared that it should be valued at $126 a share, more......

Words: 2442 - Pages: 10

Free Essay

Strong Buy

...HP – STRONG BUY Equity Research • IT • 19 August 2011 • Jyske Markets Accounts This is a case recommendation. The company will be included in our equityresearch universe as long as it holds price potential justifying a BUY recommendation. When this is no longer the case, we will discontinue our coverage although our recommendation is ACCUMULATE, REDUCE or SELL. HP price fall is overdone We restate our STRONG BUY recommendation for HP and see yesterday’s dramatic price fall as an attractive opportunity to buy. This particularly applies to investors who are patient enough to wait for better market conditions/macro-economic improvement. HP lowers its outlook: as feared, HP (like Dell (STRONG BUY) earlier in the week) last night downgraded its full-year outlook. It was, however, a relatively moderate downgrade since the sales forecast was lowered by 1.6% and EPS by 3%. Whereas HP previously guided 2011 sales and EPS at USD 129bn-130bn and USD 5.0, respectively, HP now guides USD 127.2bn-127.6bn and USD 4.82-4.86, respectively. HP’s forecast is still a shade better than we had estimated (USD 127.6bn and USD 4.7). The reduced forecast reflects a sluggish willingness to buy among private business customers and that corporate customers are now more hesitant due to the rising macro-economic uncertainty. For Q4, HP guides sales at USD 31.1bn-32.5bn as well as Non-GAAP EPS of USD 1.12-1.16 compared with consensus at USD 33.9bn and USD 1.30, respectively. In addition, HP......

Words: 2087 - Pages: 9

Premium Essay

Technology Hardware, Storage & Peripherals

...Powered by S&P Capital IQ INDUSTRY SURVEYS Technology Hardware, Storage & Peripherals April 2015 ANGELO ZINO, CFA Equity Analyst www.spcapitaliq.com 2 April 2015 INDUSTRY SURVEYS Technology Hardware, Storage & Peripherals PERFORMANCE Sector Overview Industry Overview Revenues Expenses Profits & Margins Valuation Capital Markets INDUSTRY PROFILE Trends INQUIRIES & CLIENT SUPPORT 800.523.4534 clientsupport@standardandpoors.com SALES 877.219.1247 wealth@spcapitaliq.com Key Ratios And Statistics CONTACTS How The Industry Operates How To Analyze This Industry Glossary Industry References Comparative Company Analysis MEDIA Michael Privitera 212.438.6679 michael.privitera@spcapitaliq.com S&P CAPITAL IQ 55 Water Street New York, NY 10041 All of the views expressed in these research reports accurately reflect the research analyst’s personal views regarding any and all of the subject securitiesor issuers. No part of the analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report. For important regulatory information, go to www.standardandpoors.com and click on Regulatory Affairs and Disclaimers. Copyright © 2015 Standard & Poor’s Financial Services LLC, a part of McGraw-Hill Financial. All rights reserved. 3 April 2015 INDUSTRY SURVEYS Technology Hardware, Storage &......

Words: 29719 - Pages: 119

Premium Essay

Effects of Cloud Computing in the Global Business Environment

...BEFORE/AFTER CLOUD COMPUTING…….………………………12-15 US ENERGY AND CLIMATE POLICY………………………………………………………………………………………15 CLOUD COMPUTING PROVIDERS………………………………………………………………………………….....16-21 Salesforce.com……………………………………………………………………………………………………………....16-17 Amazon-Web Services…………………………………………………………………………………………….....17-19 Cisco Systems…………………………………………………………………………………………………...…..19-21 CLOUD AND INDUSTRY’S FUTURE………………………………………………………………………….……... 21-22 CONCLUSION…………………………………………………………………………………………………….……...……. 22-23 EXHIBITS…………………………………………………………………………………………………………………….…...…. 24 Annual Financials for Salesforce.com…………………………………………………………………..……..24-26 Annual Financials for Amazon-Web Services……………………………………………………….….27-29 Annual Financial for Cisco Systems………………………………………………………………………30-32 Financial Ratios……………………………………………………………………………………………………………….……….33 Grow Customer Base……………………………………………………………………………………………………………….33 Grow Market Share………………………………………………………………………………………………………….……..33 Salesforce Historical Stock Chart……………………………………………………………………………..………………34 Amazon.com Historical Stock Chart…………………………………………………………………………………………34 Cisco Systems Historical Stock Chart…………………………………………………………………………………..…..34 REFERENCES…………………………………………………………………………………………………………………35-37 INTRODUCTION Cloud computing is a technology model that allows users to access and obtain delivery of information and resources over the Internet. This model...

Words: 6829 - Pages: 28

Premium Essay

Apple Company Report

...Apple Computer, Inc Company Report I have chosen to do Apple Computer, Inc for my company report. Apple is in the computer software industry and in the technology sector. Apple is a very interesting company with its vast relationships with other big companies and also huge loyal customer base it has created over the years. From the buyer concentration aspect Apple has many relationships with huge manufacturing companies such as LG and previously Samsung for their iPhone and iPad displays. All the way to their partner in China called Foxconn which is the company responsible for employing Chinese workers to build Apple's devices. At the same time however though Apple has a huge seller concentration with selling its multiple product lines to the public. This includes iPhones, iPods, iPads, iMacs, Macbooks, vast accessories for their products, and Apple TV. Apple sells these various products through its massive amount of storefronts but also through partnerships with the major Telecommunications companies such as AT&T, Verizon, and Sprint to name the ones in the U.S. They do have partnerships with other Telecommunications internationally as well. The company operates in Cupertino, California and " The Company also sells its hardware and software products to enterprise and government customers in each of its geographic segments. The Company’s products are deployed in these markets because of their power, productivity, ease of use and the simplicity of seamless integration into......

Words: 2763 - Pages: 12

Premium Essay

Financial Statement Analysis

...solution SOLUTIONS TO EXERCISES AND CASES For FINANCIAL STATEMENT ANALYSIS AND SECURITY VALUATION Stephen H. Penman Fifth Edition CHAPTER ONE Introduction to Investing and Valuation Concept Questions C1.1. Fundamental risk arises from the inherent risk in the business – from sales revenue falling or expenses rising unexpectedly, for example. Price risk is the risk of prices deviating from fundamental value. Prices are subject to fundamental risk, but can move away from fundamental value, irrespective of outcomes in the fundamentals. When an investor buys a stock, she takes on fundamental risk – the stock price could drop because the firm’s operations don’t meet expectations – but she also runs the (price) risk of buying a stock that is overpriced or selling a stock that is underpriced. Chapter 19 elaborates and Figure 19.5 (in Chapter 19) gives a display. C1.2. A beta technology measures the risk of an investment and the required return that the risk requires. The capital asset pricing model (CAPM) is a beta technology; is measures risk (beta) and the required return for the beta. An alpha technology involves techniques that identify mispriced stocks than can earn a return in excess of the required return (an alpha return). See Box 1.1. The appendix to Chapter 3 elaborates on beta technologies. C1.3. This statement is based on a statistical average from the historical data: The return on......

Words: 103287 - Pages: 414

Premium Essay

Skdjhldk

...|University of Wisconsin-Madison | |School of Business | |Business Strategy MHR 723 | |Monday evening 6:15 -9:00 | |Spring 2008 | Ms. Lori Cross Telephone : (608) 298-0058 Mobile : (608) 692-2000 e-Mail : lcross@bus.wisc.edu or lj_cross@msn.com Office : Grainger 4281 Office Hours : 4 - 6 (before scheduled classes) by appointment Course Description and Objectives Few leaders would disagree that a firm’s performance is directly linked with their chosen strategy and their ability to implement that strategy. Traditionally, books and articles on strategy have focused on the development of a strategic plan, based on situational and competitive analyses and forward-looking forecasts. In today’s world, these traditional methods are no longer sufficient to address rapidly changing environments and the challenge of executing global strategies. This course will......

Words: 1443 - Pages: 6

Free Essay

Saas Market Overview

...Introduction to Centaur Partners SaaS Market Overview Centaur Partners Mergers & Acquisitions, Private Placement Advisory, and Transaction Consulting May 2015 CONFIDENTIAL – NOT FOR DISTRIBUTION © 2015, Centaur Partners │Confidential | Technology Market Overview IT Storage IT Infrastructure NASDAQ Composite IT Security BigData 160 SaaS Internet Digital Media 150 140 130 120 12% 110 100 90 80 5/7 6/7 7/7 8/7 9/7 10/7 11/7 12/7 1/7 2/7 3/7 4/7 IT Security SaaS Internet/Digital Media NASDAQ Big Data IT Infrastructure 43% 31% 25% 23% 6% 5/7 4% Source: CapIQ 5/4/15 IT Security Index: AVG, SYMC, CHKP, FTNT, PANW, FIRE, IMPV, VDSI, PFPT, FEYE, QLYS SaaS Index: CRM, N, ATHN, ULTI, JCOM, TRAK, BCOV, DWRE, GWRE, LOGM, CTCT, CSOD, LPSN, MKTG, VOCS, IL, TNGO, SPSC, SQI, ZIXI, ELLI, NOW, WDAY, MDSO, LOCK, FLTX, QLYS, RALY, MKTO, MRIN, MODN Big Data Index: EMC, TDC, INFA, MSTR, SPLK, DWCH, ATTUF, NTAP, SPLK, DATA, FIO, FALC Internet & Digital Media: 66 companies IT Infrastructure Index: VMW, CTXS, NTAP, CA, RHT, SWI, INFA, OTEX, CVLT, CPWR, QLIK, PEGA, MVSN, PRGS, JIVE, NTCT, BLOX, GUID, MGIC, FALC, FIO, GIMO, SSNI, CYNI, RALY © 2015, Centaur Partners │Confidential │ 2 Technology M&A Trends Key M&A Statistics Technology M&A – Transactions Since 2006 Number of......

Words: 14671 - Pages: 59