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Posted by hurling (on April 23, 2012)
As of today based on the fundamentals CSCO would be fairly valued at $31.07. I would put a one year target on the stock of $32.75 based on expected growth and acquisitions.
You are looking at a company with very little debt and a large moat. Cisco remains the industry standard in networking and IP phones. They continue to be one of the leaders in firewalls. The Cisco UCS product has put them in the top three for servers. This is an extremely profitable market and the server market should continue to grow due to the fact that servers have a specific lifespan (so there's a built in replacement factor) as well as the fact that computing environments continue to need more resources.
Posted by timholland (on April 25, 2012)
I agree. CSCO is a great company. But, what assumptions are you using to get your $31 price target?
To hit it, i'm having to move the annual growth rate up to 15%.
Posted by hurling (on April 25, 2012)
$31.07 was my fair value estimate based on the fundamentals and a growth rate of 9.4 percent as well as a fair estimate of patent values and cash/invested income on hand. On a straight valuation I calculate the company to be worth $23.50 a share.
Posted by ValueHunter (on August 3, 2016)
Better Buy: Cisco Systems vs. Oracle
Posted by NYZ93 (on May 8, 2012)
Earnings are expected to be positive. We'll see
Posted by Robert.T (on March 18, 2012)
Fairly valued at best. Not the most exciting company too. The run is over. Anyone who thinks this will hit $30 is crazy.
Posted by formerhedgie (on March 19, 2012)
Disagree. Historically, it’s traded at a way higher multiple than it is currently. CSCO’ll hit $30 no problem. High quality companies with a large market cap get huge volume. The market will move on this stock.
Posted by James.H (on June 25, 2012)
How are you calculating the fair value?
Posted by maryabrooks41 (on June 26, 2012)
If i wanna invest in this business how and like how much i will get to invest and how much would be my income