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 18.49 is considered Fairly compared with the five-year average of 14.64. The fair price of Cisco Systems Inc (CSCO) is between 66.75 to 78.58 according to relative valuation methord.
Relative Value
Fair Zone
66.75-78.58
Current Price：77.76
Fair
18.54
PE
1Y
3Y
5Y
Trailing
Forward
13.50
EV/EBITDA
Cisco Systems Inc. (CSCO) has a current EV/EBITDA of 13.50. The 5-year average EV/EBITDA is 10.53. The thresholds are as follows: Strongly Undervalued below 7.86, Undervalued between 7.86 and 9.20, Fairly Valued between 11.86 and 9.20, Overvalued between 11.86 and 13.19, and Strongly Overvalued above 13.19. The current Forward EV/EBITDA of 13.50 falls within the Strongly Overvalued range.
15.13
EV/EBIT
Cisco Systems Inc. (CSCO) has a current EV/EBIT of 15.13. The 5-year average EV/EBIT is 11.54. The thresholds are as follows: Strongly Undervalued below 8.42, Undervalued between 8.42 and 9.98, Fairly Valued between 13.10 and 9.98, Overvalued between 13.10 and 14.66, and Strongly Overvalued above 14.66. The current Forward EV/EBIT of 15.13 falls within the Strongly Overvalued range.
4.99
PS
Cisco Systems Inc. (CSCO) has a current PS of 4.99. The 5-year average PS is 3.96. The thresholds are as follows: Strongly Undervalued below 3.03, Undervalued between 3.03 and 3.49, Fairly Valued between 4.43 and 3.49, Overvalued between 4.43 and 4.90, and Strongly Overvalued above 4.90. The current Forward PS of 4.99 falls within the Strongly Overvalued range.
17.78
P/OCF
Cisco Systems Inc. (CSCO) has a current P/OCF of 17.78. The 5-year average P/OCF is 13.47. The thresholds are as follows: Strongly Undervalued below 8.60, Undervalued between 8.60 and 11.03, Fairly Valued between 15.91 and 11.03, Overvalued between 15.91 and 18.35, and Strongly Overvalued above 18.35. The current Forward P/OCF of 17.78 falls within the Overvalued range.
19.51
P/FCF
Cisco Systems Inc. (CSCO) has a current P/FCF of 19.51. The 5-year average P/FCF is 14.18. The thresholds are as follows: Strongly Undervalued below 8.96, Undervalued between 8.96 and 11.57, Fairly Valued between 16.78 and 11.57, Overvalued between 16.78 and 19.39, and Strongly Overvalued above 19.39. The current Forward P/FCF of 19.51 falls within the Strongly Overvalued range.
Cisco Systems Inc (CSCO) has a current Price-to-Book (P/B) ratio of 6.52. Compared to its 3-year average P/B ratio of 4.95 , the current P/B ratio is approximately 31.73% higher. Relative to its 5-year average P/B ratio of 5.08, the current P/B ratio is about 28.34% higher. Cisco Systems Inc (CSCO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 6.44%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 6.52% , the current FCF yield is about -100.00% lower.
6.53
P/B
Median3y
4.95
Median5y
5.08
4.14
FCF Yield
Median3y
6.44
Median5y
6.52
Competitors Valuation Multiple
The average P/S ratio for CSCO's competitors is 1.36, providing a benchmark for relative valuation. Cisco Systems Inc Corp (CSCO) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 7.53%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CSCO increased by 31.35% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 14.38 to 19.22.
The secondary factor is the Revenue Growth, contributed 7.53%to the performance.
Overall, the performance of CSCO in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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