This post is to give some pointers to a friend of mine.
Cisco is an interesting company for the simple reason that it seems to be a huge value play if one were to extrapolate its Cash Returns.
However, it is far from a value play.
I have pulled out its liabilities, equity and Book value over the last 4 years.
At first glance, it looks great that book value is steadily growing.
Drill down a bit and you realize that is driven by liabilities
Anyway, long story short, when you do the calculations, it is clear that Cisco is worth anywhere between 19.9 USD per share to 24.83 per share.
If you are looking to buy, look for an entry point around 13 and try to get out around 30.