CSCO Stock -- What's In It For Investors?

By Susan Ramirez • Friday, March 24 07:35 • Permanent Link

Today we're going to take a closer look at large-cap Telecommunications company Cisco Systems, whose shares are currently trading at $49.73. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

Cisco Systems, Inc. is an American multinational technology conglomerate headquartered in San Jose, California, in the center of Silicon Valley. The company belongs to the Telecommunications sector, which has an average price to earnings (P/E) ratio of 18.85 and an average price to book (P/B) ratio of 3.12. In contrast, Cisco Systems has a trailing 12 month P/E ratio of 18.77 and a P/B ratio of 5.03.

Cisco Systems's PEG ratio is 2.35, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.