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: JakeStraw who wrote (65609)	6/23/2004 9:26:11 AM
From: Elroy	Respond to of 77400

To get more specific on CSCO's valuation...... CSCO has ~$18.95B in cash-like instruments,or $2.68 per share. That means its enterprise value (market cap minus cash) is ~$145B as of yesterday's close at $23.22 CSCO is forecast to make $0.86 cents over the next four quarters. CSCO's interest income in the April quarter was $127m, or 8% of operating income. So if adjust CSCO's share price for cash we get $23.22-$2.68 = $20.54. If we reduce the $0.86 cents EPS forecast by 8% to remove the interest income portion we get $0.79. Then CSCO's forward PE ex-cash is $20.54/$0.79 = 26x. That's not too crazy given CSCO's long term growth forecast is 16%, CSCO's EPS growth forecast over the upcoming 4 quarters is 21%, and CSCO usually beats the EPS number. Still, I prefer OVTI and VCLK! Elroy