Cisco Stock Valuation

CSCO
 Stock
  

USD 45.02  0.01  0.0222%   

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.
Tangible Asset Value is expected to rise to about 58.2 B this year, although the value of Free Cash Flow will most likely fall to about 16.3 B.
Cisco Systems shows a prevailing Real Value of $53.51 per share. The current price of the firm is $45.02. At this time, the firm appears to be undervalued. Our model approximates the value of Cisco Systems from analyzing the firm fundamentals such as Return On Equity of 29.79 %, current valuation of 176.77 B, and Profit Margin of 23.28 % 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.

Cisco Most Recent Valuation Data

Price Book
4.69
Price Sales
3.61
Forward Annual Dividend Yield
0.0338
EBITDA
16.1 B
Dividend Share
1.49
Ex Dividend Date
2022-07-05
Beta
0.95
Undervalued
Today 45.02
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.
53.51
Real Value
55.81
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:
Earnings
Estimates (11)
LowProjected EPSHigh
2.973.073.11
Details
Hype
Prediction
LowEstimated ValueHigh
42.7745.0747.37
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.051.111.17
Details
16 Analysts
Consensus
LowTarget PriceHigh
46.0061.6270.00
Details
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. When choosing an evaluation method for Cisco Systems, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Cisco Systems Investments

31.83 Billion

Cisco Valuation Drivers Correlation

Many accounts on the financial statements of Cisco Systems are highly interrelated and sometimes correlated. Consequently, when conducting Cisco's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Cisco
Click cells to compare fundamentals

Cisco Valuation Trend

Knowing Cisco Systems' actual value is paramount for traders to make sound investment determinations. Cisco Systems' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Cisco Systems' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Cisco Systems' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Cisco Market Cap

Cisco Systems is rated third in market capitalization category among related companies. Market capitalization of Communication Equipment industry is currently estimated at about 391.86 Billion. Cisco Systems totals roughly 186.43 Billion in market capitalization claiming about 48% of stocks in Communication Equipment industry.
Capitalization  Valuation  Total debt  Workforce  Revenue

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 rated third in price to sales category among related companies. It is rated third in five year return category among related companies reporting about  0.81  of Five Year Return per Price to Sales. The ratio of Price to Sales to Five Year Return for Cisco Systems is roughly  1.24 . 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 equity 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.
Fiscal Year End
July
Industry
Communication Equipment
Concentration
Communications Equipment
Full Time Employees
79.5 K
Service Category
Communications Equipment
Employer Id Number
77-0059951
Last ReportedProjected for 2022
Gross Profit36.7 B36.9 B
Profit Margin 0.24  0.23 
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 Quarterly Enterprise Value

208.21 Billion

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

Dividend Yield is expected to rise to 0.0316 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (6 B). . Cisco Systems Earning Before Interest and Taxes EBIT is quite stable at the moment as compared to the past year. The company's current value of Earning Before Interest and Taxes EBIT is estimated at 15.76 Billion. Price to Earnings Ratio is expected to rise to 26.04 this year, although the value of Accumulated Retained Earnings Deficit will most likely fall to (604.1 M).
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-5.5 B-6 B
Dividend Yield 0.0299  0.0316 
Dividends per Basic Common Share 1.68  1.46 
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 Ebitda11.00
Earnings Growth7.60%
Enterprise Value To Revenue3.43

Cisco Systems Current Valuation Indicators

Valuation refers to the process of determining the present value of Cisco Systems and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Cisco we look at many different elements of the entity such as Cisco's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Cisco Systems' valuation analysis is also 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.
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Complementary Tools for Cisco Stock analysis

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.
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
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.
Quarterly Earnings Growth YOY
0.076
Market Capitalization
186.4 B
Quarterly Revenue Growth YOY
0.002
Return On Assets
0.095
Return On Equity
0.3
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.