Cisco Systems, Inc. (CSCO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-43.6%

$58.26

vs $103.26 price

Levered DCF

$59.40

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.97

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	33.98×	26.83×	18.78×	16.91×	16.03×	22.06×	17.51×	21.06×
P/B	8.98×	5.83×	4.26×	4.81×	4.76×	5.66×	5.18×	7.29×
P/S	7.13×	4.82×	3.6×	3.74×	3.67×	4.69×	3.99×	4.72×
EV / EBITDA	23.66×	19.11×	13.78×	12.1×	11.47×	15.18×	12.18×	14.87×
Gross margin	64.5%	64.9%	64.7%	62.7%	62.5%	64.0%	64.3%	62.9%
Operating margin	24.3%	20.8%	22.6%	26.4%	27.1%	25.8%	27.6%	27.4%
Net margin	21.0%	18.0%	19.2%	22.1%	22.9%	21.3%	22.7%	22.4%
Current ratio	0.93×	1×	0.91×	1.38×	1.43×	1.49×	1.72×	1.51×
Debt / equity	0.59×	0.6×	0.68×	0.19×	0.27×	0.28×	0.38×	0.73×
Interest coverage	10.45×	7.38×	12.11×	35.2×	38.8×	29.57×	23.28×	16.55×
Dividend yield	1.5%	2.4%	3.3%	3.0%	3.3%	2.6%	3.1%	2.4%
Payout ratio	49.4%	63.2%	61.9%	50.0%	52.7%	58.2%	53.6%	51.4%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	26.4%	21.7%	22.7%	28.4%	29.7%	25.7%	29.6%	34.6%
Return on invested capital	13.0%	11.7%	10.8%	17.1%	16.3%	13.9%	15.1%	14.9%
Return on assets	10.2%	8.3%	8.3%	12.4%	12.6%	10.9%	11.8%	11.9%
Free cash flow yield	2.8%	4.9%	5.3%	8.9%	6.7%	6.3%	7.5%	6.1%
Earnings yield	2.9%	3.7%	5.3%	5.9%	6.2%	4.5%	5.7%	4.7%
Enterprise value	$473.6B	$292.9B	$217B	$211.5B	$192.7B	$236.1B	$199.3B	$257.7B
Net debt / EBITDA	1.11×	1.29×	1.49×	-0.1×	0.21×	0.15×	0.17×	0.75×
Cash conversion cycle (days)	100	75	89	82	80	58	59	62