Cisco (CSCO): Assessing Valuation After a Strong 3-Month and 1-Year Share Price Run

Cisco Systems (CSCO) has quietly put together a steady run, with shares up roughly 19% over the past 3 months and about 38% over the past year, drawing fresh attention from long term investors.

See our latest analysis for Cisco Systems.

That steady climb to a recent share price of $79.27, including a roughly double digit 30 day share price return and a strong multi year total shareholder return, suggests momentum is building as investors warm to Cisco’s growth and earnings profile.

If Cisco’s run has you thinking about what else is working in tech, it might be a good time to explore high growth tech and AI stocks for more ideas.

With solid double digit returns and analysts still seeing modest upside to fair value, the key question now is whether Cisco remains mispriced relative to its fundamentals, or if the market is already discounting its next leg of growth.

Most Popular Narrative Narrative: 6.5% Undervalued

With Cisco closing at $79.27 against a narrative fair value near $84.81, the story leans toward upside if its cash generation keeps compounding.

The analysts have a consensus price target of $75.815 for Cisco Systems based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $87.0, and the most bearish reporting a price target of just $61.0.

Read the complete narrative.

Curious how modest revenue growth, rising margins and a richer earnings multiple can still argue for upside from here? The full narrative unpacks the math, the timelines and the expectations driving that higher fair value.

Result: Fair Value of $84.81 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained security weakness or a pullback in hyperscaler AI spending could quickly undermine Cisco’s growth trajectory and challenge today’s optimistic valuation.

Find out about the key risks to this Cisco Systems narrative.

Build Your Own Cisco Systems Narrative

If you see things differently or want to dig into the numbers yourself, you can easily build a custom Cisco view in minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Cisco Systems.

Looking for more investment ideas?

Before Cisco’s story moves on without you, put your watchlist to work by scanning hand picked opportunities that match your risk appetite and return goals.

• Capture early stage momentum by targeting quality up and comers through these 3609 penny stocks with strong financials before broader market attention arrives.
• Position your portfolio at the heart of the AI wave by filtering for businesses powering intelligent infrastructure with these 25 AI penny stocks.
• Identify potential mispricings by looking for strong cash generators that still trade below intrinsic value using these 905 undervalued stocks based on cash flows.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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