Koutroumpis, PanagiotisAlNahdi, Ghaith2024-12-022023Harvardhttps://hdl.handle.net/20.500.14154/73935This dissertation focuses on valuing Cisco Systems Inc., a leading global technology firm, using two prominent valuation methods: Discounted Cash Flow (DCF) and relative valuation. It examines Cisco’s 2022 financial performance to derive an intrinsic value and provide investment recommendations. The study also reviews various valuation techniques, analyzing their strengths and limitations. By integrating financial analysis with a detailed exploration of Cisco’s business model, the paper offers insights into the challenges of forecasting, the importance of terminal growth assumptions, and the complexities of identifying comparable companies for relative valuation.This dissertation evaluates Cisco Systems Inc., a leading global technology company, to determine its intrinsic value and provide investment recommendations—buy, hold, or sell. Utilizing 2022 financial data and assuming an analysis date of January 1, 2023, the study employs Discounted Cash Flow (DCF) and relative valuation methods to establish a comprehensive valuation. A detailed review of valuation methodologies highlights the advantages and limitations of each, with DCF emphasized for its robustness in isolating intrinsic value, albeit with challenges in cash flow forecasting and terminal growth assumptions. Relative valuation is also explored for its efficiency, though the identification of comparable companies poses significant hurdles. The analysis incorporates an in-depth examination of Cisco’s business model to identify suitable industry peers, ensuring relevance in the relative valuation process. By integrating both approaches, this paper aims to deliver a well-rounded perspective on Cisco’s financial health and future potential, aiding investors in making informed decisions.31enValuationDCFComparablesEquityDebtWACCWeighted average cost of capitalcorporate financeCash statementsciscoRegression analysissensitivity analysisDepreciationamortisationTerminal valuenet present valueNPVPresent valueCashflowThesis