CSCO PE Ratio & Valuation,Is CSCO Overvalued

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 18.12 is considered Fairly compared with the five-year average of 14.72. The fair price of Cisco Systems Inc (CSCO) is between 70.21 to 82.23 according to relative valuation methord.

Relative Value

Fair Zone

70.21-82.23

Current Price：74.72

Fair

18.12

13.22

EV/EBITDA

Cisco Systems Inc. (CSCO) has a current EV/EBITDA of 13.22. The 5-year average EV/EBITDA is 10.59. The thresholds are as follows: Strongly Undervalued below 7.83, Undervalued between 7.83 and 9.21, Fairly Valued between 11.97 and 9.21, Overvalued between 11.97 and 13.35, and Strongly Overvalued above 13.35. The current Forward EV/EBITDA of 13.22 falls within the Overvalued range.

14.81

EV/EBIT

Cisco Systems Inc. (CSCO) has a current EV/EBIT of 14.81. The 5-year average EV/EBIT is 11.61. The thresholds are as follows: Strongly Undervalued below 8.37, Undervalued between 8.37 and 9.99, Fairly Valued between 13.24 and 9.99, Overvalued between 13.24 and 14.86, and Strongly Overvalued above 14.86. The current Forward EV/EBIT of 14.81 falls within the Overvalued range.

4.88

Cisco Systems Inc. (CSCO) has a current PS of 4.88. The 5-year average PS is 3.98. The thresholds are as follows: Strongly Undervalued below 3.01, Undervalued between 3.01 and 3.50, Fairly Valued between 4.47 and 3.50, Overvalued between 4.47 and 4.95, and Strongly Overvalued above 4.95. The current Forward PS of 4.88 falls within the Overvalued range.

17.39

P/OCF

Cisco Systems Inc. (CSCO) has a current P/OCF of 17.39. The 5-year average P/OCF is 13.55. The thresholds are as follows: Strongly Undervalued below 8.54, Undervalued between 8.54 and 11.04, Fairly Valued between 16.05 and 11.04, Overvalued between 16.05 and 18.55, and Strongly Overvalued above 18.55. The current Forward P/OCF of 17.39 falls within the Overvalued range.

19.08

P/FCF

Cisco Systems Inc. (CSCO) has a current P/FCF of 19.08. The 5-year average P/FCF is 14.26. The thresholds are as follows: Strongly Undervalued below 8.87, Undervalued between 8.87 and 11.57, Fairly Valued between 16.96 and 11.57, Overvalued between 16.96 and 19.66, and Strongly Overvalued above 19.66. The current Forward P/FCF of 19.08 falls within the Overvalued range.

Cisco Systems Inc (CSCO) has a current Price-to-Book (P/B) ratio of 6.39. Compared to its 3-year average P/B ratio of 4.99 , the current P/B ratio is approximately 28.01% higher. Relative to its 5-year average P/B ratio of 5.10, the current P/B ratio is about 25.17% higher. Cisco Systems Inc (CSCO) has a Forward Free Cash Flow (FCF) yield of approximately 4.24%. Compared to its 3-year average FCF yield of 6.37%, the current FCF yield is approximately -33.50% lower. Relative to its 5-year average FCF yield of 6.46% , the current FCF yield is about -34.35% lower.

6.39

P/B

Median3y

4.99

Median5y

5.10

4.24

FCF Yield

Median3y

6.37

Median5y

6.46

Competitors Valuation Multiple

The average P/S ratio for CSCO's competitors is 5.52, providing a benchmark for relative valuation. Cisco Systems Inc Corp (CSCO) exhibits a P/S ratio of 4.88, which is -11.5% above the industry average. Given its robust revenue growth of 7.53%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of CSCO increased by 22.05% 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.

7.53%

13.84B → 14.88B

Revenue Growth

33.66%

14.38 → 19.22

Margin Expansion

-19.14%

36.31 → 29.36

P/E Change

22.05%

60.60 → 73.96

Mkt Cap Growth

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Frequently Asked Questions

Is Cisco Systems Inc (CSCO) currently overvalued or undervalued?

What is Cisco Systems Inc (CSCO) fair value?

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. The fair price of Cisco Systems Inc (CSCO) is between 70.21 to 82.23 according to relative valuation methord.

How does CSCO's valuation metrics compare to the industry average?

The average P/S ratio for CSCO's competitors is 5.52, providing a benchmark for relative valuation. Cisco Systems Inc Corp (CSCO) exhibits a P/S ratio of 4.88, which is -11.50% above the industry average. Given its robust revenue growth of 7.53%, this premium appears unsustainable.

What is the current P/B ratio for Cisco Systems Inc (CSCO) as of Jan 09 2026?

As of Jan 09 2026, Cisco Systems Inc (CSCO) has a P/B ratio of 6.39. This indicates that the market values CSCO at 6.39 times its book value.

What is the current FCF Yield for Cisco Systems Inc (CSCO) as of Jan 09 2026?

As of Jan 09 2026, Cisco Systems Inc (CSCO) has a FCF Yield of 4.24%. This means that for every dollar of Cisco Systems Inc’s market capitalization, the company generates 4.24 cents in free cash flow.

What is the current Forward P/E ratio for Cisco Systems Inc (CSCO) as of Jan 09 2026?

As of Jan 09 2026, Cisco Systems Inc (CSCO) has a Forward P/E ratio of 18.12. This means the market is willing to pay $18.12 for every dollar of Cisco Systems Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Cisco Systems Inc (CSCO) as of Jan 09 2026?

As of Jan 09 2026, Cisco Systems Inc (CSCO) has a Forward P/S ratio of 4.88. This means the market is valuing CSCO at $4.88 for every dollar of expected revenue over the next 12 months.

CSCO Valuation