Highly Regarded

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

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

56% Discount TTM fundamentals · sector averages from covered peers

CSCO trades at 42.4× TTM earnings — a 56% discount to its Technology sector average of 95.5× in our coverage.

The Numbers

P/E (TTM)

42.4×

Sector avg: 95.5×

P/S (TTM)

7.5×

Sector avg: 22.7×

Market Cap

$434.03B

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 $109.85 42.4×
NVDA $217.23 53.8×
AAPL $341.95 43.3×
MSFT $539.24 33.7×
AVGO $344.31 72.2×
AMD $562.16 212.1×
PLTR $200.48 466.2×
INTC $95.36 —
ORCL $134.50 31.1×
TXN $279.15 51.2×
CRM $246.71 35.8×
QCOM $178.39 36.0×
ADBE $251.65 15.1×

Is the Discount Justified?

October 11, 2026

Cisco Systems Inc.'s P/E of 45.7x is at a discount to the technology sector average of 94.8x, reflecting its ongoing transition and market dynamics. The company achieved record fiscal year 2026 revenue of $63.3 billion, a 12% increase year-over-year, driven by robust enterprise demand for high-capacity networking and AI infrastructure. Cisco reported a 350% increase in orders from cloud providers, totaling $9.3 billion for the fiscal year. The company is strategically reallocating resources, including job cuts, to focus on key growth areas such as AI, silicon, optics, and security, and has raised its full-year AI infrastructure order target to $9 billion. This strategic pivot towards software and subscriptions, alongside increasing demand for faster data center networks driven by AI, positions Cisco to capitalize on evolving technological landscapes.

Sources

Frequently Asked Questions

Is CSCO overvalued or undervalued?
On trailing-twelve-month earnings, CSCO trades at 42.4x versus a Technology sector average of 95.5x in our coverage — a 55.6% 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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