Stock analysis · Bull Rankings model

CSCO analysis

Cisco Systems, Inc.Communication Equipment. Scored on the same transparent model behind the daily rankings.

CSCO
Cisco Systems, Inc. · Communication Equipment
FCF$11.8bA-
Rev+9.2%B
D/E0.59C+
P/E33.3xB
PEG1.02B+
60.7Score
$111.04$437.7B
1Y Target$136.05Analyst consensus · 22 analysts
5Y Target$199.18Compound horizon
10Y Target$295.48Long-dated conviction
FCF$11.8bTTM
A-
FCF $11.8b — top-quartile, exceptional for any sector
Rev+9.2%TTM YoY
B
Revenue +9.2% — at or above S&P median
D/E0.59
C+
D/E 0.59 — above the Technology debt median (≈75th pctile)
P/E33.3x
B
P/E 33.3 — near the Technology median (≈60th pctile)
PEG1.02
B+
PEG 1.02 — near fair value, classic Lynch benchmark (1.0)

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 60.7
Quality77.1
Growth72.0
Value40.3
Why this score
  • Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
15% off the 12-month high
vs DCF fair value128% aboveest. fair value ~$49
What the price assumes: free cash flow compounding at ~27% a year for the next decade — vs the ~8% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability31% · B+gross profit ÷ total assets (Novy-Marx)
ROIC14.0% · B+return on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Communication Equipment · market cap $437.7b. 15% off the 52-week high of $130.37. 22 sell-side analysts rate this a Buy with a mean 1-yr target of $136.05 (implying +23% upside).
Moat
Net margin 20% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 24% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 99% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Trailing P/E 33x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon
1-3 yr $136.05 (22-analyst consensus) — fundamentals + valuation re-rating. 5 yr $199.18 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $295.48 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

CSCO vs the Top Picks average

PillarCSCOBook avgDiff
Quality0.770.84-0.07
Growth0.720.84-0.12
Value0.400.78-0.38

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+8.2 over 46 daily scores
From 52.5 (Jun 22) → 60.7 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+15.7%
90-day change+16.1%
Forward EPS estimate$5.54

Over the last 90 days, what analysts expect CSCO to earn is materially higher (+16.1%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
18
Position size
$1,999
4.0% of portfolio
Stop price
$83.28
25% below $111.04
$ at risk if stopped
$499.68
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Cisco Systems, Inc. (CSCO): score, valuation & FAQ

Cisco Systems, Inc. (CSCO) is a Communication Equipment company that scores 60.7 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are FCF (A-) and PEG (B+). On valuation, CSCO sits about 128% above our discounted-cash-flow fair value — the current price implies roughly 27% annual free-cash-flow growth over the next decade.

Is CSCO a good stock to buy?

Bull Rankings scores CSCO 60.7 out of 100 on its quality-growth model, which is a middling reading. That is driven by FCF (A-) and PEG (B+). A score is a quantitative screen of Cisco Systems, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does CSCO score 60.7 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). CSCO earns its highest marks on FCF (A-) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is CSCO overvalued or undervalued?

Based on $111.04, CSCO sits about 128% above our discounted-cash-flow fair value — the current price implies roughly 27% annual free-cash-flow growth over the next decade. It trades at a 33.3x P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in CSCO?

Trailing P/E 33x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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