Cisco Systems Valuation

Is CSCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CSCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CSCO (€49.34) is trading below our estimate of fair value (€66.17)

Significantly Below Fair Value: CSCO is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CSCO?

Other financial metrics that can be useful for relative valuation.

CSCO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.2x
Enterprise Value/EBITDA14.9x
PEG Ratio4x

Price to Earnings Ratio vs Peers

How does CSCO's PE Ratio compare to its peers?

The above table shows the PE ratio for CSCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.3x
MSI Motorola Solutions
53.3x17.9%US$77.5b
ANET Arista Networks
53.2x12.4%US$128.7b
NOKIA Nokia Oyj
23.9x15.8%€21.8b
14.9x4.9%CN¥134.7b
CSCO Cisco Systems
21x5.2%€213.7b

Price-To-Earnings vs Peers: CSCO is good value based on its Price-To-Earnings Ratio (21x) compared to the peer average (36.3x).


Price to Earnings Ratio vs Industry

How does CSCO's PE Ratio compare vs other companies in the European Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a60.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a60.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CSCO is good value based on its Price-To-Earnings Ratio (21x) compared to the European Communications industry average (28.3x).


Price to Earnings Ratio vs Fair Ratio

What is CSCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CSCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CSCO's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CSCO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€49.34
€49.96
+1.3%
5.9%€54.69€44.66n/a23
Oct ’25€47.51
€48.81
+2.7%
6.1%€53.68€43.84n/a23
Sep ’25€45.41
€48.69
+7.2%
5.7%€53.93€44.04n/a22
Aug ’25€44.38
€49.18
+10.8%
6.5%€55.43€42.49n/a21
Jul ’25€44.32
€49.77
+12.3%
6.4%€55.99€42.92n/a21
Jun ’25€42.48
€50.49
+18.9%
10.7%€70.23€42.51n/a22
May ’25€44.08
€50.07
+13.6%
11.6%€71.35€40.37n/a24
Apr ’25€45.84
€48.96
+6.8%
12.2%€69.95€39.58n/a21
Mar ’25€44.30
€48.95
+10.5%
12.8%€70.23€39.74n/a20
Feb ’25€46.16
€49.74
+7.8%
11.9%€69.91€39.56n/a20
Jan ’25€45.67
€49.38
+8.1%
12.1%€69.15€39.13n/a20
Dec ’24€44.74
€50.53
+13.0%
12.2%€70.06€39.64n/a19
Nov ’24€49.36
€55.71
+12.9%
10.0%€71.58€42.39n/a20
Oct ’24€50.93
€55.93
+9.8%
9.7%€71.39€42.27€47.5122
Sep ’24€53.53
€54.26
+1.4%
9.4%€67.28€41.48€45.4123
Aug ’24€47.83
€51.33
+7.3%
9.8%€65.99€40.68€44.3823
Jul ’24€47.30
€51.88
+9.7%
8.7%€66.90€46.74€44.3221
Jun ’24€46.05
€53.01
+15.1%
8.9%€68.31€47.72€42.4820
May ’24€42.53
€52.23
+22.8%
9.3%€66.25€46.28€44.0820
Apr ’24€47.69
€54.60
+14.5%
9.6%€68.77€48.05€45.8422
Mar ’24€45.16
€53.80
+19.1%
9.2%€65.41€43.60€44.3021
Feb ’24€44.05
€49.51
+12.4%
10.5%€61.57€40.44€46.1621
Jan ’24€44.39
€51.41
+15.8%
12.6%€68.67€41.39€45.6722
Dec ’23€47.67
€52.77
+10.7%
12.9%€70.72€42.62€44.7422
Nov ’23€45.96
€57.46
+25.0%
13.5%€75.85€45.72€49.3623
Oct ’23€41.73
€57.46
+37.7%
13.5%€75.85€45.72€50.9323

Analyst Forecast: Target price is less than 20% higher than the current share price.


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