Question 1

What is Cisco Systems, Inc. Common Stock (DE)'s WACC?

Accepted Answer

Cisco Systems, Inc. Common Stock (DE) (CSCO) has a Weighted Average Cost of Capital (WACC) of 7.80%. This is calculated using a Cost of Equity of 8.07% (via CAPM with a beta of 0.83) and a pre-tax Cost of Debt of 5.67%, with an equity weight of 92.38% in the capital structure.

Question 2

Is Cisco Systems, Inc. Common Stock (DE)'s WACC high or low?

Accepted Answer

Cisco Systems, Inc. Common Stock (DE)'s WACC of 7.80% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Cisco Systems, Inc. Common Stock (DE)'s WACC calculated?

Accepted Answer

Cisco Systems, Inc. Common Stock (DE)'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.07% is derived from the CAPM model using a beta of 0.83. The pre-tax Cost of Debt (Rd) is 5.67%. The capital structure is 92.38% equity and 7.62% debt.

Cisco Systems, Inc. Common Stock (DE) (CSCO) — WACC 分析

WACC 构成

解读

Cisco Systems, Inc. Common Stock (DE)（CSCO）WACC：7.80%

WACC计算器

Cisco Systems, Inc. Common Stock (DE)（CSCO） WACC 解读

CSCO 公司分析

CSCO DCF 估值

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