Analysis on CSCO from 2012-11-13 The problem is everything related to PC is cheap right now, market is not favoring these

kind of tech company like before, thus such a low valuation. I am not sure how long this situation will remain. But CSCO show attractive value currently. From 2002 to 2012: annual revenue growth is 9.31%. annual earning growth is 10.84%. annual eps growth is 14.34%. These growth come with P/E keeps going down, this agrees with the assumption that market doesn't favor tech company now, they are not the "hot" thing anymore. Growth doesn't mean anything to an investor if price doesn't go up. Before the only way investor is able to share CSCO's growth was by price going up. However this started to change a bit when CSCO started paying dividend in 2011, this is a good way to share profit with investors, and if CSCO can keep growing its earnings and dividends in next 5 years, this would be a good value play. I don't know enough about networking business to have high accuracy predicting CSCO future earnings, however it shows a somewhat consistent historical growth. I hope someone knows about networking market can share his/her insight.

From 2002 to 2012: annual revenue growth is 9.31%. annual earning growth is 10.84%. annual eps growth is 14.34%. If we assume things slows down to 6% growth, and dividend grow at 4% per year. We get the following

With earning of 10760.67 million, taking a 9% discount rate, we get 119.56 Billion Market Cap. 34% difference with current market cap. Not bad for a margin... P/E today is 11.33, with EPS of 1.994, if P/E stay the same, we get share price of 22.59. Current Price is 16.83, CSCO increased dividend to 0.14 per quarter (http://investor.cisco.com/splits.cfm), dividend yield of 3.33%.