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

To: RetiredNow who wrote (62737)	1/19/2003 2:01:25 PM
From: hueyone	Respond to of 77400

actually, I still think that free cash flow can be used to value a company that is into heavily using stock options. You just have to make sure you take into account all the stock options transactions, like expensing the options and making sure you aren't adding things like cash inflows for things like options exercises. We are in agreement on this, but most people are failing to take stock option expense out of their free cash flow number for the reasons I cited in my post. So my discounted cash flow calc ensures that no manipulations due to stock options become relevant. One of these days, I would like to go back and review the numbers you and JS used in your DCF discussion. Regards, Huey