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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: SouthFloridaGuy who wrote (62512)12/11/2002 5:52:48 PM
From: RetiredNow  Read Replies (1) | Respond to of 77400
 
Hi LongIslandGuy,

Cisco's risk adjusted weighted average cost of capital is significantly less than 15%. I personally am using a swag of 8%. Plus their average tax burden is closer to 30% on average. Lastly, you have to add in the companies current bookvalue less intangibles to the PV of future free cashflows to figure out the total estimated value of the firm. My calculations tell me that Cisco is worth about $8.66.

It may not surprise you to know I don't own any shares right now. :)