Highly Regarded

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

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

44% Discount TTM fundamentals · sector averages from covered peers

CSCO trades at 43.2× TTM earnings — a 44% discount to its Technology sector average of 76.8× in our coverage.

The Numbers

P/E (TTM)

43.2×

Sector avg: 76.8×

P/S (TTM)

7.7×

Sector avg: 18.4×

Market Cap

$442.21B

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 $111.92 43.2×
NVDA $202.77 50.2×
AAPL $333.66 42.2×
MSFT $393.89 24.6×
AVGO $370.92 77.8×
AMD $495.65 187.0×
INTC $94.98 —
ORCL $126.41 29.3×
PLTR $132.35 307.8×
TXN $283.97 52.1×
QCOM $171.79 34.7×
CRM $170.83 24.8×
ADBE $237.22 14.2×

Is the Discount Justified?

July 6, 2026

Cisco Systems Inc. trades at a P/E of 44.0x, which is a discount compared to the Technology sector average of 76.3x. The company recently reported solid Q3 FY2026 results, with revenue up 12% year-over-year to $15.8 billion and non-GAAP EPS increasing 10%, exceeding analyst expectations. Cisco is experiencing strong demand for its technology, particularly in connecting and securing AI infrastructure, and anticipates approximately $9 billion in AI infrastructure orders from hyperscalers in FY2026. The company also reported healthy non-GAAP gross margins of 66.0% and operating margins of 34.2% in Q3 FY2026. Despite these positive indicators and a significant role in critical technology infrastructure, its valuation multiple remains below the broader sector average.

Sources

Frequently Asked Questions

Is CSCO overvalued or undervalued?
On trailing-twelve-month earnings, CSCO trades at 43.2x versus a Technology sector average of 76.8x in our coverage — a 43.7% 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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Same question, Technology peers

AVGO NVDA TXN INTC ADBE QCOM