Cisco Systems Valuation

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

Valuation Score

2/6

Valuation 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.

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 Ratio24.8x
EarningsUS$9.39b
Market CapUS$233.19b

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 Average45.2x
MSI Motorola Solutions
53.6x17.2%US$83.7b
ANET Arista Networks
48x13.0%US$128.0b
UI Ubiquiti
55.6x29.0%US$21.7b
NOKIA Nokia Oyj
23.7x17.9%€21.7b
CSCO * Cisco Systems
24.8x8.0%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 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies29PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

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.

CSCO * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.8x
Fair PE Ration/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?

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
CurrentMex$1,181.26
Mex$1,258.51
+6.5%
10.5%Mex$1,584.61Mex$1,015.78n/a24
Nov ’25Mex$1,129.99
Mex$1,138.70
+0.8%
10.0%Mex$1,573.46Mex$988.45n/a24
Oct ’25Mex$1,040.00
Mex$1,070.54
+2.9%
6.1%Mex$1,177.39Mex$961.54n/a23
Sep ’25Mex$978.00
Mex$1,029.02
+5.2%
5.7%Mex$1,139.75Mex$930.79n/a22
Aug ’25Mex$874.82
Mex$957.74
+9.5%
6.5%Mex$1,079.39Mex$827.53n/a21
Jul ’25Mex$879.99
Mex$967.47
+9.9%
6.4%Mex$1,088.40Mex$834.44n/a21
Jun ’25Mex$781.06
Mex$910.76
+16.6%
10.7%Mex$1,266.87Mex$766.79n/a22
May ’25Mex$806.60
Mex$913.87
+13.3%
11.6%Mex$1,302.27Mex$736.81n/a24
Apr ’25Mex$831.00
Mex$894.58
+7.7%
12.2%Mex$1,278.20Mex$723.19n/a21
Mar ’25Mex$813.00
Mex$906.83
+11.5%
12.8%Mex$1,300.97Mex$736.07n/a20
Feb ’25Mex$861.00
Mex$930.85
+8.1%
11.9%Mex$1,308.39Mex$740.28n/a20
Jan ’25Mex$861.98
Mex$932.22
+8.1%
12.1%Mex$1,305.48Mex$738.63n/a20
Dec ’24Mex$835.16
Mex$945.22
+13.2%
12.2%Mex$1,310.51Mex$741.47n/a19
Nov ’24Mex$932.44
Mex$1,067.86
+14.5%
10.0%Mex$1,372.07Mex$812.41Mex$1,129.9920
Oct ’24Mex$935.00
Mex$1,022.72
+9.4%
9.7%Mex$1,305.34Mex$772.90Mex$1,040.0022
Sep ’24Mex$987.00
Mex$1,003.80
+1.7%
9.4%Mex$1,244.74Mex$767.31Mex$978.0023
Aug ’24Mex$890.00
Mex$955.50
+7.4%
9.8%Mex$1,228.50Mex$757.29Mex$874.8223
Jul ’24Mex$869.00
Mex$969.21
+11.5%
8.7%Mex$1,249.72Mex$873.09Mex$879.9921
Jun ’24Mex$876.00
Mex$1,002.05
+14.4%
8.9%Mex$1,291.25Mex$902.11Mex$781.0620
May ’24Mex$850.00
Mex$1,034.74
+21.7%
9.3%Mex$1,312.53Mex$916.97Mex$806.6020
Apr ’24Mex$931.00
Mex$1,085.94
+16.6%
9.6%Mex$1,367.86Mex$955.63Mex$831.0022
Mar ’24Mex$894.00
Mex$1,044.98
+16.9%
9.2%Mex$1,270.28Mex$846.86Mex$813.0021
Feb ’24Mex$892.50
Mex$1,013.04
+13.5%
10.5%Mex$1,259.81Mex$827.34Mex$861.0021
Jan ’24Mex$920.00
Mex$1,067.58
+16.0%
12.6%Mex$1,425.92Mex$859.46Mex$861.9822
Dec ’23Mex$958.00
Mex$1,059.06
+10.5%
12.9%Mex$1,419.27Mex$855.45Mex$835.1622
Nov ’23Mex$890.00
Mex$1,128.13
+26.8%
13.5%Mex$1,489.10Mex$897.54Mex$932.4423

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


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