CSCO · Technology
Cisco Systems (CSCO) stock valuation & score
Cisco Systems, Inc. (CSCO) is a technology company with a market capitalisation of $424.7B. Its share price was $107.74 as of September 17, 2026.
Arqon grades its valuation F and gives it an overall score of 75 out of 100, which ranks Cisco Systems #14 of the 58 large US companies Arqon covers.
- Valuation grade
- F
- Overall score
- 75/100
- Rank
- 14/58
- Share price
- $107.74
- Market cap
- $424.7B
- P/E ratio
- 32.0×
Valuation grade: F
Cisco Systems is graded F, the lowest grade: the share price is well above what its valuation models justify.
The grade combines a discounted cash flow (DCF) model, a simpler model built on earnings and free cash flow, and a comparison of today’s P/E, price-to-free-cash-flow and EV/EBITDA multiples with their own historical medians. It describes the price relative to those models, not a recommendation.
Cisco Systems’s fair value, its upside and the full DCF breakdown are reserved for Arqon members.
See the fair valueOverall score: 75/100
A score of 75 points to solid fundamentals. The overall score adds four pillars, each marked out of 25: profitability (returns on capital and margins), growth (revenue, earnings and free cash flow), financial health (debt and interest coverage) and quality (accounting solidity and dilution).
- Strength — Net margin: 21.0% for Cisco Systems, against a median of 10.5% across the 58 companies Arqon covers.
- Strength — Free cash flow margin: 20.2% for Cisco Systems, against a median of 10.9% across the 58 companies Arqon covers.
- Weak point — Revenue growth (5-year CAGR): 5.3% for Cisco Systems, against a median of 10.6% across the 58 companies Arqon covers.
CSCO key financial ratios
| Ratio | CSCO | Median of the companies covered |
|---|---|---|
| P/E ratio | 32.0× | 28.9× |
| Price-to-sales | 6.7× | 3.2× |
| EV / EBITDA | 22.3× | 19.6× |
| Return on equity (ROE) | 26.4% | 17.7% |
| Return on invested capital (ROIC) | 17.5% | 10.5% |
| Gross margin | 64.5% | 49.0% |
| Net margin | 21.0% | 10.5% |
| Free cash flow margin | 20.2% | 10.9% |
| Revenue growth (5-year CAGR) | 5.3% | 10.6% |
| EPS growth (5-year CAGR) | 4.4% | 5.6% |
| Debt to equity | 0.59 | 0.63 |
| Current ratio | 0.93 | 1.11 |
| Interest coverage | 10.5× | 8.0× |
| Dividend yield | 1.5% | 0.4% |
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Frequently asked questions
Is CSCO stock undervalued?
Arqon grades Cisco Systems’s valuation F: on its models, the share price looks very demanding relative to the company’s earnings and cash flows. The fair value estimate itself is reserved for Arqon members. This is not investment advice.
What is Cisco Systems’s Arqon score?
Cisco Systems scores 75 out of 100, #14 of the 58 companies Arqon covers. The score adds profitability, growth, financial health and quality, each marked out of 25.
How often is this page updated?
Prices are refreshed every weekday before the US market opens, valuation grades every week and scores after each quarterly report. Prices shown are as of September 17, 2026; the valuation grade as of September 12, 2026.
Arqon is a research tool, not an investment adviser. Grades and scores describe data and models; they are not a recommendation to buy or sell any security.