Cisco Systems, Inc.

NasdaqGS:CSCO Stock Report

Market Cap: US$227.1b

Cisco Systems Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 ($57.5) is trading below our estimate of fair value ($67.98)

Significantly Below Fair Value: CSCO 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 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 Ratio24.4x
EarningsUS$9.39b
Market CapUS$227.06b

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 Average43.9x
MSI Motorola Solutions
52.7x17.2%US$81.5b
ANET Arista Networks
45.1x13.0%US$119.0b
UI Ubiquiti
52.8x29.0%US$20.8b
FFIV F5
25x10.7%US$14.0b
CSCO Cisco Systems
24.4x8.0%US$227.1b

Price-To-Earnings vs Peers: CSCO is good value based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (43.9x).

Price to Earnings Ratio vs Industry

How does CSCO's PE Ratio compare vs other companies in the US Communications Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ATVK Ameritek Ventures
3.9xn/aUS$609.65k
NIHK Video River Networks
0.2xn/aUS$382.98k
No more companies available in this PE range
CSCO 24.4xIndustry Avg. 22.7xNo. of Companies3PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CSCO is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the North American Communications industry average (22.7x).

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 Ratio24.4x
Fair PE Ratio27.3x

Price-To-Earnings vs Fair Ratio: CSCO is good value based on its Price-To-Earnings Ratio (24.4x) compared to the estimated Fair Price-To-Earnings Ratio (27.3x).

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
CurrentUS$57.50
US$61.95
+7.7%
10.5%US$78.00US$50.00n/a24
Nov ’25US$55.50
US$56.45
+1.7%
10.0%US$78.00US$49.00n/a24
Oct ’25US$52.74
US$54.55
+3.4%
6.1%US$60.00US$49.00n/a23
Sep ’25US$50.54
US$54.17
+7.2%
5.7%US$60.00US$49.00n/a22
Aug ’25US$47.39
US$53.24
+12.3%
6.5%US$60.00US$46.00n/a21
Jul ’25US$47.52
US$53.33
+12.2%
6.4%US$60.00US$46.00n/a21
Jun ’25US$46.50
US$54.64
+17.5%
10.7%US$76.00US$46.00n/a22
May ’25US$46.84
US$53.33
+13.9%
11.6%US$76.00US$43.00n/a24
Apr ’25US$50.04
US$53.19
+6.3%
12.2%US$76.00US$43.00n/a21
Mar ’25US$48.40
US$52.98
+9.5%
12.8%US$76.00US$43.00n/a20
Feb ’25US$50.18
US$54.07
+7.8%
11.9%US$76.00US$43.00n/a20
Jan ’25US$50.52
US$54.27
+7.4%
12.1%US$76.00US$43.00n/a20
Dec ’24US$48.47
US$54.82
+13.1%
12.2%US$76.00US$43.00n/a19
Nov ’24US$52.19
US$59.15
+13.3%
10.0%US$76.00US$45.00US$55.5020
Oct ’24US$53.76
US$59.55
+10.8%
9.7%US$76.00US$45.00US$52.7422
Sep ’24US$57.84
US$58.87
+1.8%
9.4%US$73.00US$45.00US$50.5423
Aug ’24US$52.66
US$56.78
+7.8%
9.8%US$73.00US$45.00US$47.3923
Jul ’24US$51.74
US$56.61
+9.4%
8.7%US$73.00US$51.00US$47.5221
Jun ’24US$49.74
US$56.65
+13.9%
8.9%US$73.00US$51.00US$46.5020
May ’24US$47.34
US$57.55
+21.6%
9.3%US$73.00US$51.00US$46.8420
Apr ’24US$52.28
US$57.95
+10.9%
9.6%US$73.00US$51.00US$50.0422
Mar ’24US$48.34
US$56.76
+17.4%
9.2%US$69.00US$46.00US$48.4021
Feb ’24US$48.57
US$53.88
+10.9%
10.5%US$67.00US$44.00US$50.1821
Jan ’24US$47.64
US$54.65
+14.7%
12.6%US$73.00US$44.00US$50.5222
Dec ’23US$49.97
US$54.47
+9.0%
12.9%US$73.00US$44.00US$48.4722
Nov ’23US$45.46
US$55.30
+21.7%
13.5%US$73.00US$44.00US$52.1923

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

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