Highly Regarded

Is Cisco Systems Inc. (CSCO) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

53% Discount TTM fundamentals · sector averages from covered peers

CSCO trades at 42.7× TTM earnings — a 53% discount to its Technology sector average of 89.7× in our coverage.

The Numbers

P/E (TTM)

42.7×

Sector avg: 89.7×

P/S (TTM)

7.6×

Sector avg: 21.6×

Market Cap

$436.48B

EPS (TTM): $2.59

Revenue (TTM)

$57.70B

Net income: $10.33B

Technology Peer Comparison

How CSCO's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
CSCO This page $110.47 42.7×
NVDA $220.92 54.7×
AAPL $316.83 40.1×
MSFT $507.14 31.7×
AVGO $370.45 77.7×
AMD $470.95 177.7×
INTC $89.54 —
PLTR $186.32 433.3×
ORCL $149.14 34.5×
CRM $257.65 37.4×
TXN $260.82 47.9×
QCOM $170.46 34.4×
ADBE $292.76 17.5×

Is the Discount Justified?

August 30, 2026

Cisco Systems Inc. trades at a P/E of 42.4x, which is a substantial discount compared to the technology sector average of 85.4x. This valuation likely reflects Cisco's position as a more mature company within the technology sector, primarily focused on networking hardware and enterprise solutions. While Cisco maintains a strong market presence and continues to evolve its offerings, including software and services, its growth trajectory may be perceived as more moderate compared to the higher-growth segments of the technology sector, such as those driven by emerging AI and cloud computing innovations. The sector average is often influenced by companies experiencing rapid expansion and higher future earnings expectations, which may not align with Cisco's current growth profile.

Sources

Frequently Asked Questions

Is CSCO overvalued or undervalued?
On trailing-twelve-month earnings, CSCO trades at 42.7x versus a Technology sector average of 89.7x in our coverage — a 52.5% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing CSCO with its own Technology peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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