Cisco Systems Valuation

Is 0R0K 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 0R0K when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0R0K ($58.45) is trading below our estimate of fair value ($69.27)

Significantly Below Fair Value: 0R0K is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0R0K?

Key metric: As 0R0K is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0R0K. This is calculated by dividing 0R0K's market cap by their current earnings.
What is 0R0K's PE Ratio?
PE Ratio24.4x
EarningsUS$9.39b
Market CapUS$229.53b

Price to Earnings Ratio vs Peers

How does 0R0K's PE Ratio compare to its peers?

The above table shows the PE ratio for 0R0K vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average63.5x
SPT Spirent Communications
96.2x41.0%UK£1.0b
ANET Arista Networks
53.3x11.9%US$137.4b
FTC Filtronic
54x55.7%UK£169.7m
MSI Motorola Solutions
50.3x17.4%US$77.5b
0R0K Cisco Systems
24.4x8.1%US$229.5b

Price-To-Earnings vs Peers: 0R0K is good value based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (62.8x).


Price to Earnings Ratio vs Industry

How does 0R0K's PE Ratio compare vs other companies in the European Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0R0K 24.4xIndustry Avg. 31.7xNo. of Companies6PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0R0K is good value based on its Price-To-Earnings Ratio (24.4x) compared to the Global Communications industry average (31.7x).


Price to Earnings Ratio vs Fair Ratio

What is 0R0K'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.

0R0K PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.4x
Fair PE Ratio34.5x

Price-To-Earnings vs Fair Ratio: 0R0K is good value based on its Price-To-Earnings Ratio (24.4x) compared to the estimated Fair Price-To-Earnings Ratio (34.5x).


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 0R0K forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$58.45
US$62.16
+6.4%
10.8%US$78.00US$50.00n/a24
Dec ’25US$59.50
US$61.95
+4.1%
10.5%US$78.00US$50.00n/a24
Nov ’25US$55.45
US$56.45
+1.8%
10.0%US$78.00US$49.00n/a24
Oct ’25US$52.40
US$54.55
+4.1%
6.1%US$60.00US$49.00n/a23
Sep ’25US$50.25
US$54.17
+7.8%
5.7%US$60.00US$49.00n/a22
Aug ’25US$47.80
US$53.24
+11.4%
6.5%US$60.00US$46.00n/a21
Jul ’25US$47.53
US$53.33
+12.2%
6.4%US$60.00US$46.00n/a21
Jun ’25US$46.15
US$54.64
+18.4%
10.7%US$76.00US$46.00n/a22
May ’25US$47.23
US$53.33
+12.9%
11.6%US$76.00US$43.00n/a24
Apr ’25US$49.65
US$53.19
+7.1%
12.2%US$76.00US$43.00n/a21
Mar ’25US$48.00
US$52.98
+10.4%
12.8%US$76.00US$43.00n/a20
Feb ’25US$50.05
US$54.07
+8.0%
11.9%US$76.00US$43.00n/a20
Jan ’25US$49.75
US$54.27
+9.1%
12.1%US$76.00US$43.00n/a20
Dec ’24US$48.18
US$54.82
+13.8%
12.2%US$76.00US$43.00US$59.5019
Nov ’24US$52.00
US$59.15
+13.7%
10.0%US$76.00US$45.00US$55.4520
Oct ’24US$53.35
US$59.55
+11.6%
9.7%US$76.00US$45.00US$52.4022
Sep ’24US$57.80
US$58.87
+1.9%
9.4%US$73.00US$45.00US$50.2523
Aug ’24US$52.50
US$56.78
+8.1%
9.8%US$73.00US$45.00US$47.8023
Jul ’24US$50.75
US$56.61
+11.6%
8.7%US$73.00US$51.00US$47.5321
Jun ’24US$49.43
US$56.65
+14.6%
8.9%US$73.00US$51.00US$46.1520
May ’24US$46.30
US$57.55
+24.3%
9.3%US$73.00US$51.00US$47.2320
Apr ’24US$50.51
US$57.95
+14.8%
9.6%US$73.00US$51.00US$49.6522
Mar ’24US$48.19
US$56.76
+17.8%
9.2%US$69.00US$46.00US$48.0021
Feb ’24US$48.11
US$53.88
+12.0%
10.5%US$67.00US$44.00US$50.0521
Jan ’24US$47.20
US$54.65
+15.8%
12.6%US$73.00US$44.00US$49.7522
Dec ’23US$50.07
US$54.47
+8.8%
12.9%US$73.00US$44.00US$48.1822

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


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 20:40
End of Day Share Price 2024/12/20 00:00
Earnings2024/10/26
Annual Earnings2024/07/27

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Cisco Systems, Inc. is covered by 92 analysts. 27 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Edward ZabitskyACI Research
James KelleherArgus Research Company
Josep BoriAtlantic Equities LLP