Cisco Systems, Inc.

BRSE:CSCO Stock Report

Market Cap: CHF 177.9b

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 (CHF72.22)

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?

Key metric: As CSCO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CSCO. This is calculated by dividing CSCO's market cap by their current earnings.
What is CSCO's PE Ratio?
PE Ratio20.5x
EarningsUS$10.32b
Market CapUS$211.59b

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 Average41.2x
MSI Motorola Solutions
52.5x17.2%US$81.7b
ANET Arista Networks
43.8x13.0%US$117.9b
LOGN Logitech International
16.6x0.4%CHF 10.3b
UI Ubiquiti
52x29.0%US$20.3b
CSCO Cisco Systems
20.5x4.9%CHF 211.6b

Price-To-Earnings vs Peers: CSCO is good value based on its Price-To-Earnings Ratio (20.5x) compared to the peer average (35.7x).

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
CSCO 20.5xIndustry Avg. 30.2xNo. of Companies7PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CSCO is good value based on its Price-To-Earnings Ratio (20.5x) compared to the European Communications industry average (28.5x).

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 Ratio20.5x
Fair PE Ratio29x

Price-To-Earnings vs Fair Ratio: CSCO is good value based on its Price-To-Earnings Ratio (20.5x) compared to the estimated Fair Price-To-Earnings Ratio (29x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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