Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: hueyone who wrote (62731)	1/19/2003 8:30:03 AM
From: RetiredNow	Read Replies (2) \| Respond to of 77400

Hi Hueyone, just for the record, how are you calculating Free Cash Flow? When I run my discounted cash flows valuation spreadsheet to figure out Cisco's value, I'm using the following: Net Income + Depr & Amort + Amort of In-Process R&D = Subtotal - Purchased PP&E - Business Acquisitions = Free Cash Flow So as you stated, cash inflows from stock options exercise wouldn't be included, despite that being a real increase in their cash pile. You'll also note, that if Cisco expensed stock options, then it would lower net income, which would lower Free Cash Flows.