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Cisco Systems traded at $20 per share on December 3, 2001. Analysts are forecasting earnings per share of 0.22 for 2002 and 0.39 for 2003.

Cisco Systems traded at $20 per share on December 3, 2001. Analysts are forecasting earnings per share of 0.22 for 2002 and 0.39 for 2003. The firm does not pay dividends. Value Cisco on the assumption that abnormal growth (AEG) forecasted for 2003 will continue at the same level into the future. Use a cost of equity capital of 10%.

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