Cisco Systems Valuation
Is CSCO * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
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 * (MX$1181.26) is trading above our estimate of fair value (MX$1065.29)
Significantly Below Fair Value: CSCO * is trading above our estimate of fair value.
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.
What is CSCO *'s PE Ratio? | |
---|---|
PE Ratio | 24.8x |
Earnings | US$9.39b |
Market Cap | US$233.19b |
Key Statistics | |
---|---|
Enterprise Value/Revenue | 4.7x |
Enterprise Value/EBITDA | 17.3x |
PEG Ratio | 3.1x |
Price to Earnings Ratio vs Peers
How does CSCO *'s PE Ratio compare to its peers?
Company | Forward PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 45.2x | ||
MSI Motorola Solutions | 53.6x | 17.2% | US$83.7b |
ANET Arista Networks | 48x | 13.0% | US$128.0b |
UI Ubiquiti | 55.6x | 29.0% | US$21.7b |
NOKIA Nokia Oyj | 23.7x | 17.9% | €21.7b |
CSCO * Cisco Systems | 24.8x | 8.0% | Mex$233.2b |
Price-To-Earnings vs Peers: CSCO * is good value based on its Price-To-Earnings Ratio (24.8x) compared to the peer average (45.2x).
Price to Earnings Ratio vs Industry
How does CSCO *'s PE Ratio compare vs other companies in the Global Communications Industry?
8 Companies | Price / Earnings | Estimated Growth | Market Cap |
---|---|---|---|
8 Companies | Estimated Growth | Market Cap | |
---|---|---|---|
Price-To-Earnings vs Industry: CSCO * 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 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.
Fair Ratio | |
---|---|
Current PE Ratio | 24.8x |
Fair PE Ratio | n/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?
Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
---|---|---|---|---|---|---|---|
Current | Mex$1,181.26 | Mex$1,258.51 +6.5% | 10.5% | Mex$1,584.61 | Mex$1,015.78 | n/a | 24 |
Nov ’25 | Mex$1,129.99 | Mex$1,138.70 +0.8% | 10.0% | Mex$1,573.46 | Mex$988.45 | n/a | 24 |
Oct ’25 | Mex$1,040.00 | Mex$1,070.54 +2.9% | 6.1% | Mex$1,177.39 | Mex$961.54 | n/a | 23 |
Sep ’25 | Mex$978.00 | Mex$1,029.02 +5.2% | 5.7% | Mex$1,139.75 | Mex$930.79 | n/a | 22 |
Aug ’25 | Mex$874.82 | Mex$957.74 +9.5% | 6.5% | Mex$1,079.39 | Mex$827.53 | n/a | 21 |
Jul ’25 | Mex$879.99 | Mex$967.47 +9.9% | 6.4% | Mex$1,088.40 | Mex$834.44 | n/a | 21 |
Jun ’25 | Mex$781.06 | Mex$910.76 +16.6% | 10.7% | Mex$1,266.87 | Mex$766.79 | n/a | 22 |
May ’25 | Mex$806.60 | Mex$913.87 +13.3% | 11.6% | Mex$1,302.27 | Mex$736.81 | n/a | 24 |
Apr ’25 | Mex$831.00 | Mex$894.58 +7.7% | 12.2% | Mex$1,278.20 | Mex$723.19 | n/a | 21 |
Mar ’25 | Mex$813.00 | Mex$906.83 +11.5% | 12.8% | Mex$1,300.97 | Mex$736.07 | n/a | 20 |
Feb ’25 | Mex$861.00 | Mex$930.85 +8.1% | 11.9% | Mex$1,308.39 | Mex$740.28 | n/a | 20 |
Jan ’25 | Mex$861.98 | Mex$932.22 +8.1% | 12.1% | Mex$1,305.48 | Mex$738.63 | n/a | 20 |
Dec ’24 | Mex$835.16 | Mex$945.22 +13.2% | 12.2% | Mex$1,310.51 | Mex$741.47 | n/a | 19 |
Nov ’24 | Mex$932.44 | Mex$1,067.86 +14.5% | 10.0% | Mex$1,372.07 | Mex$812.41 | Mex$1,129.99 | 20 |
Oct ’24 | Mex$935.00 | Mex$1,022.72 +9.4% | 9.7% | Mex$1,305.34 | Mex$772.90 | Mex$1,040.00 | 22 |
Sep ’24 | Mex$987.00 | Mex$1,003.80 +1.7% | 9.4% | Mex$1,244.74 | Mex$767.31 | Mex$978.00 | 23 |
Aug ’24 | Mex$890.00 | Mex$955.50 +7.4% | 9.8% | Mex$1,228.50 | Mex$757.29 | Mex$874.82 | 23 |
Jul ’24 | Mex$869.00 | Mex$969.21 +11.5% | 8.7% | Mex$1,249.72 | Mex$873.09 | Mex$879.99 | 21 |
Jun ’24 | Mex$876.00 | Mex$1,002.05 +14.4% | 8.9% | Mex$1,291.25 | Mex$902.11 | Mex$781.06 | 20 |
May ’24 | Mex$850.00 | Mex$1,034.74 +21.7% | 9.3% | Mex$1,312.53 | Mex$916.97 | Mex$806.60 | 20 |
Apr ’24 | Mex$931.00 | Mex$1,085.94 +16.6% | 9.6% | Mex$1,367.86 | Mex$955.63 | Mex$831.00 | 22 |
Mar ’24 | Mex$894.00 | Mex$1,044.98 +16.9% | 9.2% | Mex$1,270.28 | Mex$846.86 | Mex$813.00 | 21 |
Feb ’24 | Mex$892.50 | Mex$1,013.04 +13.5% | 10.5% | Mex$1,259.81 | Mex$827.34 | Mex$861.00 | 21 |
Jan ’24 | Mex$920.00 | Mex$1,067.58 +16.0% | 12.6% | Mex$1,425.92 | Mex$859.46 | Mex$861.98 | 22 |
Dec ’23 | Mex$958.00 | Mex$1,059.06 +10.5% | 12.9% | Mex$1,419.27 | Mex$855.45 | Mex$835.16 | 22 |
Nov ’23 | Mex$890.00 | Mex$1,128.13 +26.8% | 13.5% | Mex$1,489.10 | Mex$897.54 | Mex$932.44 | 23 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
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