Cisco Systems, Inc.

Valuation Analysis

About the Company

Cisco Systems, Inc. designs, develops, and sells technologies that help to power, secure, and draw insights from the internet in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company offers data center switching; network security, identity and access management, and secure access service edge; threat intelligence, detection, and response solutions; interconnects public and private wireline and mobile networks, delivering connectivity to campus, data center, and branch networks; WEBEX suite, collaboration devices, and contact center; communication platform as a service software, including perpetual licenses, subscription arrangements, and hardware solutions; network assurance, monitoring and analytics, and observability suite; issue resolution, softw

Cisco Systems, Inc. Stock at a Glance

Cisco Systems, Inc. (CSCO) is currently trading at $121.10 with a market capitalization of $477.3B. The trailing P/E ratio stands at 40.37x, with a forward P/E of 25.35x. The 52-week range spans from $64.85 to $130.37; the current price is 7.1% below the yearly high. Year-over-year revenue growth stands at +12.0%. The net profit margin stands at 19.68%.

💰 Dividend

Cisco Systems, Inc. pays an annual dividend of $1.68 per share, representing a yield of 1.39%. The payout ratio stands at 55%.

📊 Analyst Rating

22 analysts rate Cisco Systems, Inc. (CSCO) on consensus: Buy. The average price target is $126.95, implying +4.83% from the current price. Analyst price targets range from $84.98 to $150.00.

Cisco Systems, Inc.: The Investment Case in Detail

Cisco Systems, Inc. (CSCO) operates in the Technology — specifically Communication Equipment — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 12% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 37.1% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. With a gross margin near 64.3%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns.

The Bear Case

Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The EV/EBITDA multiple of 29.03x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 25.35x is meaningfully below the trailing 40.37x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility.

Trading Data

💵 Dividend Info

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