Cisco Systems Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 (CHF50) is trading below our estimate of fair value (CHF90.43)

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/Revenue3.7x
Enterprise Value/EBITDA12.2x
PEG Ratio-11.4x

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 Average33.7x
ANET Arista Networks
45.3x12.4%US$104.2b
MSI Motorola Solutions
46.8x17.0%US$65.8b
LOGN Logitech International
22.3x2.7%CHF 12.1b
NOKIA Nokia Oyj
20.4x15.6%€18.6b
CSCO Cisco Systems
15.7x-1.4%CHF 190.6b

Price-To-Earnings vs Peers: CSCO is good value based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (33.7x).


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/a58.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a58.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CSCO is good value based on its Price-To-Earnings Ratio (15.7x) compared to the European Communications industry average (23.1x).


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 Ratio15.7x
Fair PE Ratio29.5x

Price-To-Earnings vs Fair Ratio: CSCO is good value based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (29.5x).


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
CurrentCHF 50.00
CHF 48.03
-3.9%
6.8%CHF 53.84CHF 41.28n/a21
Jul ’25CHF 50.00
CHF 47.40
-5.2%
6.7%CHF 53.04CHF 40.67n/a21
Jun ’25CHF 50.00
CHF 50.02
+0.03%
10.7%CHF 69.57CHF 42.11n/a22
May ’25CHF 50.00
CHF 48.62
-2.8%
11.6%CHF 69.29CHF 39.20n/a24
Apr ’25CHF 50.00
CHF 47.24
-5.5%
12.2%CHF 67.50CHF 38.19n/a21
Mar ’25CHF 50.00
CHF 46.68
-6.6%
12.8%CHF 66.97CHF 37.89n/a20
Feb ’25CHF 50.00
CHF 46.58
-6.8%
11.9%CHF 65.47CHF 37.04n/a20
Jan ’25CHF 50.00
CHF 47.04
-5.9%
12.1%CHF 65.88CHF 37.27n/a20
Dec ’24CHF 50.00
CHF 48.74
-2.5%
12.2%CHF 67.57CHF 38.23n/a19
Nov ’24CHF 50.00
CHF 53.33
+6.7%
10.0%CHF 68.52CHF 40.57n/a20
Oct ’24CHF 50.00
CHF 54.02
+8.0%
9.7%CHF 68.95CHF 40.82n/a22
Sep ’24CHF 50.00
CHF 52.00
+4.0%
9.4%CHF 64.48CHF 39.75n/a23
Aug ’24CHF 50.00
CHF 49.33
-1.3%
9.8%CHF 63.42CHF 39.10n/a23
Jul ’24CHF 50.00
CHF 50.67
+1.3%
8.7%CHF 65.34CHF 45.65CHF 50.0021
Jun ’24CHF 50.00
CHF 51.60
+3.2%
8.9%CHF 66.49CHF 46.46CHF 50.0020
May ’24CHF 50.00
CHF 51.44
+2.9%
9.3%CHF 65.25CHF 45.58CHF 50.0020
Apr ’24CHF 50.00
CHF 53.89
+7.8%
9.6%CHF 67.88CHF 47.43CHF 50.0022
Mar ’24CHF 49.71
CHF 53.40
+7.4%
9.2%CHF 64.92CHF 43.28CHF 50.0021
Feb ’24CHF 49.71
CHF 49.72
+0.02%
10.5%CHF 61.83CHF 40.60CHF 50.0021
Jan ’24CHF 49.71
CHF 50.79
+2.2%
12.6%CHF 67.83CHF 40.89CHF 50.0022
Dec ’23CHF 49.71
CHF 51.96
+4.5%
12.9%CHF 69.63CHF 41.97CHF 50.0022
Nov ’23CHF 49.71
CHF 54.92
+10.5%
13.5%CHF 72.50CHF 43.70CHF 50.0023
Oct ’23CHF 49.71
CHF 54.92
+10.5%
13.5%CHF 72.50CHF 43.70CHF 50.0023
Sep ’23CHF 49.71
CHF 53.28
+7.2%
12.8%CHF 69.98CHF 42.18CHF 50.0024
Aug ’23CHF 49.71
CHF 52.30
+5.2%
15.0%CHF 70.97CHF 38.89CHF 50.0024
Jul ’23CHF 49.71
CHF 51.93
+4.5%
15.0%CHF 70.04CHF 38.38CHF 50.0024

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


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