Cisco Stock Valuation

CSCO
 Stock
  

USD 41.15  0.49  1.21%   

What is the current enterprise value of Cisco Systems? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Cisco Systems, is its stock price multiplied by the total number of shares outstanding, calculating Cisco Systems' enterprise value requires a different approach. It uses Cisco Systems' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Cisco Systems shows a prevailing Real Value of $52.23 per share. The current price of the firm is $41.15. At this time, the firm appears to be undervalued. Our model approximates the value of Cisco Systems from analyzing the firm fundamentals such as Current Valuation of 178.26 B, profit margin of 23.28 %, and Return On Equity of 29.79 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Cisco Systems Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Cisco Systems's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 41.15
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.
Our valuation method for Cisco Systems is useful when determining the fair value of the Cisco stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Cisco Systems. 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.
52.23
Real Value
53.76
Upside
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:
Hype
Prediction
LowEstimated ValueHigh
39.0940.6242.15
Details
16 Analysts
Consensus
LowTarget PriceHigh
46.0061.6270.00
Details

Cisco Systems Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Cisco Systems's current stock value. Our valuation model uses many indicators to compare Cisco Systems value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cisco Systems competition to find correlations between indicators driving Cisco Systems's intrinsic value. More Info.
Cisco Systems is number one stock in price to sales category among related companies. It is number one stock in price to book category among related companies fabricating about  1.32  of Price to Book per Price to Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Cisco Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cisco Systems' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cisco Systems' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Cisco Systems' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Cisco Systems and how it compares across the competition.

About Cisco Systems Valuation

The stock valuation mechanism determines the current worth of Cisco Systems on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Cisco Systems's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Cisco Systems's related companies.
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California. Cisco Systems operates under Communication Equipment classification in the United States and is traded on NASDAQ Exchange. It employs 79500 people.
Cisco Systems' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Cisco Systems' value is low or high relative to the company's performance and growth projections. Determining the market value of Cisco Systems can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

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 Valuation Growth Rates

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. Note, investing in growth stocks can be very risky. If the company such as Cisco Systems does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.23
Earnings Quarterly Growth6.30%
Revenue Growth0.20%
Payout Ratio52.28%
Enterprise Value To Ebitda11.09
Earnings Growth7.60%
Enterprise Value To Revenue3.46
Continue to Trending Equities. Note that the Cisco Systems information on this page should be used as a complementary analysis to other Cisco Systems' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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When running Cisco Systems price analysis, check to measure Cisco Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cisco Systems is operating at the current time. Most of Cisco Systems' value examination focuses on studying past and present price action to predict the probability of Cisco Systems' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Cisco Systems' price. Additionally, you may evaluate how the addition of Cisco Systems to your portfolios can decrease your overall portfolio volatility.
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Is Cisco Systems' industry 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.
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 Cisco Systems value 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.