Cisco (CSCO) Financial Forecast Calculator
Interactive 5-year forecast and DCF for Cisco. Adjust revenue growth, gross margin, capex intensity, WACC, and terminal growth - see revenue, free cash flow, and enterprise value update in real time. Seeded from Cisco’s most recent SEC filings.
Assumptions
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Keep iterating on the Cisco forecast in Excel. The downloadable sample has every assumption you see here plus a fully integrated income statement, balance sheet, cash flow, and debt schedule - five years of SEC historicals and live formulas in a fully editable workbook.
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Frequently asked
What does Cisco Systems, Inc. do?+
Cisco Systems, Inc. is a global leader in networking, cybersecurity, collaboration, and observability solutions that power enterprise IT infrastructure. The company designs and sells a broad range of technologies, increasingly embedding artificial intelligence into its product portfolios to help customers manage and secure their digital operations.
How does Cisco generate revenue, and what are its main business segments?+
Cisco generates revenue through its Networking, Services, Security, Collaboration, and Observability segments, with Networking contributing approximately 45-50% of total revenue. The company is transitioning to a software and subscription-based platform, with subscriptions now accounting for over 54% of its total revenue.
What is Cisco's capital expenditure strategy given its business model?+
Cisco maintains a highly capital-efficient model, with capital expenditure typically ranging from 1.5% to 2.5% of revenue due to its asset-light outsourced manufacturing approach. Investments are primarily directed towards maintenance (IT systems, lab equipment) and growth areas such as AI data center designs and secure AI factories.
How has the Splunk acquisition impacted Cisco's financial structure and growth trajectory?+
The $28 billion acquisition of Splunk, which closed in March 2024, fundamentally altered Cisco's growth trajectory and significantly increased its goodwill and purchased intangible assets. This strategic move supports Cisco's transition towards a software and subscription-based platform, enhancing its cybersecurity and observability offerings.
What are the key assumptions used in the Cisco financial model for forecasting?+
The Cisco financial model incorporates key assumptions such as a revenue growth rate of approximately 2.37% and COGS as 36.7% of revenue. Other significant inputs include R&D as 13.02% of revenue, SGA as 4.03% of revenue, and a tax rate of about 19.24%.
Can I download an Excel financial model for Cisco (CSCO)?+
Yes, an Excel financial model for Cisco (CSCO) is available for download, which evaluates the company's equity valuation and cash flow generation capacity. This model specifically focuses on the financial impact of Cisco's transition from legacy hardware sales to recurring software subscriptions following the transformational Splunk acquisition.
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