Cisco Systems, Inc. (CSCO) Stock Analysis — Fair Value, Risk & Moat Rating

Cisco Systems, Inc. (CSCO) stock price is $89.80 as of the latest market close, traded on the NASDAQ exchange.

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. It 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, software support, and hardware replacement; professional services, such as planning, design, implementation, and high-value consulting; service and support packages, financing, and managed network services; and regional, national, and international wireline carriers, webscale products, internet, and cable.

Cisco Systems, Inc. has a market capitalization of $354.81B, classifying it as a mega-cap stock in the Technology sector.

Cisco Systems, Inc. operates in the Technology sector, specifically within the Communication Equipment industry. It trades on the NASDAQ under the ticker symbol CSCO.

Based on our valuation model, Cisco Systems, Inc. trades 4.3% above our fair value estimate — potentially overvalued.

• FairValueLabs Fair Value: $86.08
• Current Price: $89.80
• Valuation Zone: Fairly Valued

Based on 22 Wall Street analysts, the consensus price target for Cisco Systems, Inc. is $89.09, implying downside of 0.8% from the current price.

• Analyst High Target: $100.00
• Analyst Low Target: $75.00

Note: Analyst targets are shown for reference and are not used in our valuation model.

Here are the analyst consensus growth estimates for Cisco Systems, Inc.:

• Revenue growth (current year est.): 8.7%
• EPS growth (current year est.): 9.1%
• Revenue growth (next year est.): 5.5%
• EPS growth (next year est.): 8.5%

The price-to-earnings ratio measures how much investors pay per dollar of earnings:

• Trailing P/E (last 12 months): 32.3x
• Forward P/E (next 12 months est.): 19.9x
• FairValueLabs Fair P/E: 27.5x

Cisco Systems, Inc. has a beta of 0.82, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.

Cisco Systems, Inc.'s balance sheet shows:

• Total Cash: $15.78B
• Total Debt: $31.74B
• Net Cash Position: $-15.96B

A positive net cash position means the company holds more cash than debt, reducing financial risk.

Cisco Systems, Inc. generated $10.13B in trailing twelve-month free cash flow (from $13.32B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.

Yes, Cisco Systems, Inc. pays a regular dividend. Here are the key metrics:

• Dividend Yield: 1.8%
• Payout Ratio: 59.0%
• Consecutive Years Paid: 16
• 5-Year Dividend Growth: -10.8%
• FairValueLabs Safety Grade: A

Cisco Systems, Inc.'s Altman Z-Score is 3.63, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.

Cisco Systems, Inc. scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:

• ROIC Stability: 4/5
• Gross Margin Trend: 4/5
• Switching Costs: 3/5

A score above 3.5 suggests meaningful pricing power and a defensible market position.

Cisco Systems, Inc.'s return on equity is 23.8%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.

CSCO shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:

1. Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
2. Search for ticker symbol CSCO
3. Place a market or limit order for your desired number of shares

This is not investment advice. Always do your own research before buying any stock.

FairValueLabs classifies Cisco Systems, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.

The current CEO of Cisco Systems, Inc. is Mr. Charles H. Robbins.

Earnings per share measures the company's profit allocated to each outstanding share:

• Trailing EPS (last 12 months): $2.78
• Forward EPS (next 12 months est.): $4.51
• Analyst consensus EPS (this year): $4.16
• Analyst consensus EPS (next year): $4.51