Cisco Systems Valuation
| CSCO Stock | USD 59.29 0.30 0.50% |
At this time, the firm appears to be fairly valued. Cisco Systems shows a prevailing Real Value of $61.09 per share. The current price of the firm is $59.29. Our model approximates the value of Cisco Systems from analyzing the firm fundamentals such as Current Valuation of 247.26 B, return on equity of 0.21, and Profit Margin of 0.18 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Cisco Systems' valuation include:
Price Book 5.167 | Enterprise Value 247.3 B | Enterprise Value Ebitda 17.3311 | Price Sales 4.48 | Forward PE 16.1551 |
Fairly Valued
Today
Please note that Cisco Systems' price fluctuation is very steady at this time. Calculation of the real value of Cisco Systems is based on 3 months time horizon. Increasing Cisco Systems' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Cisco Systems is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cisco Stock. However, Cisco Systems' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 59.29 | Real 61.09 | Target 55.39 | Hype 59.38 | Naive 59.21 |
The intrinsic value of Cisco Systems' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Cisco Systems' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Cisco Systems helps investors to forecast how Cisco stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Cisco Systems more accurately as focusing exclusively on Cisco Systems' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Cisco Systems' intrinsic value based on its ongoing forecasts of Cisco Systems' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Cisco Systems' closest peers.
Cisco Systems Cash |
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Cisco Valuation Trend
Knowing Cisco Systems' actual value is paramount for traders when making sound investment determinations. Using both Cisco Systems' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Cisco Revenue by Product
Cisco Systems Total Value Analysis
Cisco Systems is currently forecasted to have valuation of 247.26 B with market capitalization of 237.33 B, debt of 30.96 B, and cash on hands of 10.12 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Cisco Systems fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
247.26 B | 237.33 B | 30.96 B | 10.12 B |
Cisco Systems Investor Information
About 79.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.65. Cisco Systems last dividend was issued on the 3rd of January 2025. The entity had 2:1 split on the 23rd of March 2000. Based on the key indicators related to Cisco Systems' liquidity, profitability, solvency, and operating efficiency, Cisco Systems is performing exceptionally good at this time. It has a great probability to report excellent financial results in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.26 | 0.2264 |
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| Total Cash From Operating Activities | 8.9 B | 10.9 B |
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| Operating Income | 7.2 B | 13 B |
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Cisco Systems Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cisco Systems has an asset utilization ratio of 43.25 percent. This suggests that the Company is making $0.43 for each dollar of assets. An increasing asset utilization means that Cisco Systems is more efficient with each dollar of assets it utilizes for everyday operations.Cisco Systems Ownership Allocation
Cisco Systems holds a total of 3.98 Billion outstanding shares. The majority of Cisco Systems outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cisco Systems to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cisco Systems. Please pay attention to any change in the institutional holdings of Cisco Systems as this could imply that something significant has changed or is about to change at the company. On October 8, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of Cisco Systems's common stock.Cisco Systems Profitability Analysis
The company reported the previous year's revenue of 53.8 B. Net Income was 10.32 B with profit before overhead, payroll, taxes, and interest of 35.75 B.Cisco Systems Past Distributions to stockholders
About Cisco Systems Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Cisco Systems. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cisco Systems based exclusively on its fundamental and basic technical indicators. By analyzing Cisco Systems's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Cisco Systems's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cisco Systems. We calculate exposure to Cisco Systems's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Cisco Systems's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 34.8 B | 19.4 B | |
| Pretax Profit Margin | 0.23 | 0.27 | |
| Operating Profit Margin | 0.23 | 0.26 | |
| Net Profit Margin | 0.19 | 0.21 | |
| Gross Profit Margin | 0.65 | 0.64 |
A single share of Cisco Systems represents a small ownership stake in the entity. As a stockholder of Cisco, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Cisco Systems Dividends Analysis For Valuation
As of the 28th of November 2024, Dividend Paid And Capex Coverage Ratio is likely to grow to 2.25, while Dividends Paid is likely to drop about 4.9 B. . As of the 28th of November 2024, Price Earnings Ratio is likely to grow to 22.07, while Retained Earnings are likely to drop about 1 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 6.4 B | 4.9 B | |
| Dividend Yield | 0.03 | 0.03 | |
| Dividend Payout Ratio | 0.62 | 0.58 | |
| Dividend Paid And Capex Coverage Ratio | 1.54 | 2.25 |
There are various types of dividends Cisco Systems can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Cisco shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Cisco Systems directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Cisco pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Cisco Systems by the value of the dividends paid out.
Cisco Systems Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 4.1 B | |
| Quarterly Earnings Growth Y O Y | -0.237 | |
| Forward Price Earnings | 16.1551 |
Cisco Systems Current Valuation Indicators
Cisco Systems' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Cisco Systems' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Cisco Systems, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Cisco Systems' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Cisco Systems' worth.When determining whether Cisco Systems offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cisco Systems' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cisco Systems Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cisco Systems Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cisco Systems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. To learn how to invest in Cisco Stock, please use our How to Invest in Cisco Systems guide.You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cisco Systems. If investors know Cisco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cisco Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.24) | Dividend Share 1.19 | Earnings Share 2.33 | Revenue Per Share 13.158 | Quarterly Revenue Growth (0.06) |
The market value of Cisco Systems is measured differently than its book value, which is the value of Cisco that is recorded on the company's balance sheet. Investors also form their own opinion of Cisco Systems' value that differs from its market value or its book value, called intrinsic value, which is Cisco Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cisco Systems' market value can be influenced by many factors that don't directly affect Cisco Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cisco Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cisco Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cisco Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.