Cisco Systems, Inc.

XTRA:CIS Stock Report

Market Cap: €223.9b

Cisco Systems Valuation

Is CIS 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 CIS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CIS (€56.06) is trading below our estimate of fair value (€70.26)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CIS. This is calculated by dividing CIS's market cap by their current earnings.
What is CIS's PE Ratio?
PE Ratio24.8x
EarningsUS$9.39b
Market CapUS$233.19b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.8x
MSI Motorola Solutions
53.6x17.2%US$83.7b
ANET Arista Networks
48x13.0%US$128.0b
FEW Funkwerk
10.1xn/a€163.6m
UI Ubiquiti
55.6x29.0%US$21.7b
CIS Cisco Systems
24.8x8.0%€233.2b

Price-To-Earnings vs Peers: CIS is good value based on its Price-To-Earnings Ratio (24.8x) compared to the peer average (41.8x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CIS 24.8xIndustry Avg. 31.0xNo. of Companies7PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CIS is good value based on its Price-To-Earnings Ratio (24.8x) compared to the Global Communications industry average (30.5x).

Price to Earnings Ratio vs Fair Ratio

What is CIS'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.

CIS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.8x
Fair PE Ratio16.5x

Price-To-Earnings vs Fair Ratio: CIS is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.5x).

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 CIS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€56.06
€58.78
+4.8%
10.5%€74.01€47.44n/a24
Nov ’25€51.23
€51.98
+1.5%
10.0%€71.82€45.12n/a24
Oct ’25€47.44
€48.81
+2.9%
6.1%€53.68€43.84n/a23
Sep ’25€45.39
€48.69
+7.3%
5.7%€53.93€44.04n/a22
Aug ’25€44.35
€49.18
+10.9%
6.5%€55.43€42.49n/a21
Jul ’25€44.34
€49.77
+12.2%
6.4%€55.99€42.92n/a21
Jun ’25€42.49
€50.49
+18.8%
10.7%€70.23€42.51n/a22
May ’25€44.13
€50.07
+13.5%
11.6%€71.35€40.37n/a24
Apr ’25€46.33
€48.96
+5.7%
12.2%€69.95€39.58n/a21
Mar ’25€44.33
€48.95
+10.4%
12.8%€70.23€39.74n/a20
Feb ’25€46.26
€49.74
+7.5%
11.9%€69.91€39.56n/a20
Jan ’25€45.61
€49.38
+8.3%
12.1%€69.15€39.13n/a20
Dec ’24€44.73
€50.53
+13.0%
12.2%€70.06€39.64n/a19
Nov ’24€49.41
€55.71
+12.8%
10.0%€71.58€42.39€51.2320
Oct ’24€50.86
€55.93
+10.0%
9.7%€71.39€42.27€47.4422
Sep ’24€53.58
€54.26
+1.3%
9.4%€67.28€41.48€45.3923
Aug ’24€47.87
€51.33
+7.2%
9.8%€65.99€40.68€44.3523
Jul ’24€47.31
€51.88
+9.7%
8.7%€66.90€46.74€44.3421
Jun ’24€46.07
€53.01
+15.1%
8.9%€68.31€47.72€42.4920
May ’24€42.59
€52.23
+22.6%
9.3%€66.25€46.28€44.1320
Apr ’24€47.65
€54.60
+14.6%
9.6%€68.77€48.05€46.3322
Mar ’24€45.17
€53.80
+19.1%
9.2%€65.41€43.60€44.3321
Feb ’24€44.00
€49.51
+12.5%
10.5%€61.57€40.44€46.2621
Jan ’24€44.44
€51.41
+15.7%
12.6%€68.67€41.39€45.6122
Dec ’23€47.60
€52.77
+10.9%
12.9%€70.72€42.62€44.7322
Nov ’23€46.04
€57.46
+24.8%
13.5%€75.85€45.72€49.4123

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

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