CSCO Valuation

Cisco Systems Inc

Add to Watchlist

Advanced Chart

66.200

-3.1(-4.473%)1D

Overview
Forecast
Valuation
Earnings

CSCO Relative Valuation

CSCO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CSCO is overvalued; if below, it's undervalued.

Historical Valuation

Cisco Systems Inc (CSCO) is now in the Fair zone, suggesting that its current forward PE ratio of 16.39 is considered Fairly compared with the five-year average of 14.35. The fair price of Cisco Systems Inc (CSCO) is between 64.25 to 75.32 according to relative valuation methord.

Relative Value

Fair Zone

64.25-75.32

Current Price：66.20

Fair

16.39

Trailing

Forward

12.23

EV/EBITDA

Cisco Systems Inc. (CSCO) has a current EV/EBITDA of 12.23. The 5-year average EV/EBITDA is 10.28. The thresholds are as follows: Strongly Undervalued below 7.67, Undervalued between 7.67 and 8.97, Fairly Valued between 11.58 and 8.97, Overvalued between 11.58 and 12.88, and Strongly Overvalued above 12.88. The current Forward EV/EBITDA of 12.23 falls within the Overvalued range.

13.42

EV/EBIT

Cisco Systems Inc. (CSCO) has a current EV/EBIT of 13.42. The 5-year average EV/EBIT is 11.25. The thresholds are as follows: Strongly Undervalued below 8.23, Undervalued between 8.23 and 9.74, Fairly Valued between 12.77 and 9.74, Overvalued between 12.77 and 14.28, and Strongly Overvalued above 14.28. The current Forward EV/EBIT of 13.42 falls within the Overvalued range.

4.39

Cisco Systems Inc. (CSCO) has a current PS of 4.39. The 5-year average PS is 3.89. The thresholds are as follows: Strongly Undervalued below 2.98, Undervalued between 2.98 and 3.43, Fairly Valued between 4.35 and 3.43, Overvalued between 4.35 and 4.80, and Strongly Overvalued above 4.80. The current Forward PS of 4.39 falls within the Overvalued range.

15.32

P/OCF

Cisco Systems Inc. (CSCO) has a current P/OCF of 15.32. The 5-year average P/OCF is 13.14. The thresholds are as follows: Strongly Undervalued below 8.54, Undervalued between 8.54 and 10.84, Fairly Valued between 15.44 and 10.84, Overvalued between 15.44 and 17.74, and Strongly Overvalued above 17.74. The current Forward P/OCF of 15.32 falls within the Historic Trend Line -Fairly Valued range.

15.36

P/FCF

Cisco Systems Inc. (CSCO) has a current P/FCF of 15.36. The 5-year average P/FCF is 13.85. The thresholds are as follows: Strongly Undervalued below 8.91, Undervalued between 8.91 and 11.38, Fairly Valued between 16.33 and 11.38, Overvalued between 16.33 and 18.80, and Strongly Overvalued above 18.80. The current Forward P/FCF of 15.36 falls within the Historic Trend Line -Fairly Valued range.

Cisco Systems Inc (CSCO) has a current Price-to-Book (P/B) ratio of 5.56. Compared to its 3-year average P/B ratio of 4.80 , the current P/B ratio is approximately 15.80% higher. Relative to its 5-year average P/B ratio of 4.99, the current P/B ratio is about 11.57% higher. Cisco Systems Inc (CSCO) has a Forward Free Cash Flow (FCF) yield of approximately 5.07%. Compared to its 3-year average FCF yield of 6.69%, the current FCF yield is approximately -24.18% lower. Relative to its 5-year average FCF yield of 6.77% , the current FCF yield is about -25.13% lower.

5.56

P/B

Median3y

4.80

Median5y

4.99

5.07

FCF Yield

Median3y

6.69

Median5y

6.77

Competitors Valuation Multiple

The average P/S ratio for CSCO's competitors is 4.78, providing a benchmark for relative valuation. Cisco Systems Inc Corp (CSCO) exhibits a P/S ratio of 4.39, which is -8.09% above the industry average. Given its robust revenue growth of 7.56%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Telefonaktiebolaget LM Ericsson

Motorola Solutions Inc

Performance Decomposition

Market capitalization of CSCO increased by 32.89% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 15.85 to 19.24.

The secondary factor is the Revenue Growth, contributed 7.56%to the performance.

Overall, the performance of CSCO in the past 1 year is driven by Margin Expansion. Which is more sustainable.

7.56%

13.64B → 14.67B

Revenue Growth

21.39%

15.85 → 19.24

Margin Expansion

3.94%

24.40 → 25.36

P/E Change

32.89%