Bull Rankings model

Cisco Systems, Inc. (CSCO) stock analysis

Communication Equipment. Scored on the same transparent model behind the daily rankings.

★
CSCO
Cisco Systems, Inc. · Communication Equipment
57.1Score
$118.39Oct 9 close$466.8B
1Y Target$136.16Analyst consensus · 25 analysts
5Y Target$199.35Compound horizon
10Y Target$295.72Long-dated conviction
FCF$12.8bTTM · 07/26
A-
FCF $12.8b — top-quartile, exceptional for any sector · Trailing twelve months to 07/26 (operating cash flow − capex).
Rev+11.8%FY YoY
B
Revenue +11.8% — at or above S&P median · Computed from the last two annual revenue figures (FY YoY).
D/E0.62
C+
D/E 0.62 — above the Technology debt median (≈75th pctile)
P/E35.6x
B
P/E 35.6 — near the Technology median (≈60th pctile)
PEG1.06
B+
PEG 1.06 — near fair value (1.0 is the usual benchmark)

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Quality-growth score · 57.1
Quality77.2
Growth74.1
Value32.5
Why this score
  • Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
9% off the 12-month high
vs DCF fair value115% aboveest. fair value ~$55
What the price assumes: free cash flow growing about 26% next year, slowing to 4% a year by year ten — vs a starting rate of ~9% our model takes as the middle of three readings — analyst estimates, last year's revenue growth, and the company's own multi-year record.

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Communication Equipment · market cap $466.8b. 9% off the 52-week high of $130.37. Revenue growing +12%, comfortably above the S&P median. 25 sell-side analysts rate this a Buy with a mean 1-yr target of $136.16 (implying +15% upside).
Moat
Net margin 21% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 27% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 96% of net income — earnings translate cleanly into cash.
Risk
Trailing P/E 36x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon
1-3 yr $136.16 (25-analyst consensus) — fundamentals + valuation re-rating. 5 yr $199.35 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $295.72 if current growth sustains into durable earnings power.

CSCO vs the Top Picks average

PillarCSCOBook avgDiff
Quality7783-6
Growth7489-15
Value3276-44

Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.

Trend
+4.6 over 81 daily scores
From 52.5 (Jun 22) → 57.1 (now)

One point per daily run; read From → To for the actual range.

CSCO at a glance

THE BULL RANKINGS SCORECARD57.1/ 100 · BULL SCOREPEER MEDIANQUALITY77.2GROWTH74.1VALUE32.5Reverse-DCF · Price implies ~26% growth a year from here.
PRICE vs OUR DCF FAIR VALUE$51.4–$61FAIR-VALUE RANGE$118PRICEOur DCF fair value ~$55.1 · price $118 is 115% above it.
ONE-YEAR MOVE VS ITS BETAFLATThis stock+69%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.
PRICE IN ITS 52-WEEK RANGE$118LOW $66.8HIGH $130Trading at the 81st percentile of its 52-week range ($66.8–$130).

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change+0.2%
90-day change+17.7%
Forward EPS estimate$5.62

Over the last 90 days, what analysts expect CSCO to earn is materially higher (+17.7%). 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.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
16
Position size
$1,894
3.8% of portfolio
Stop price
$88.79
25% below $118.39
$ at risk if stopped
$473.56
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

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

Cisco Systems, Inc. (CSCO) is a Communication Equipment company that scores 57.1 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 115% above our discounted-cash-flow fair value — the current price implies free cash flow growing about 26% next year, slowing to 4% a year by year ten.

Is CSCO a good stock to buy?

Bull Rankings scores CSCO 57.1 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 57.1 on Bull Rankings?

The score leans on quality at 77.2 out of 100, with value the weakest pillar at 32.5 — the three combine geometrically, so a weak one cannot be papered over by a strong one. CSCO earns its highest marks on FCF (A-) and PEG (B+). Each signal is graded against sector-aware thresholds rather than one absolute bar, so CSCO is measured against Communication Equipment peers, not against the market as a whole.

Is CSCO overvalued or undervalued?

Based on $118.39, CSCO sits about 115% above our discounted-cash-flow fair value — the current price implies free cash flow growing about 26% next year, slowing to 4% a year by year ten. It trades at a 35.6x 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 36x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.

New to these metrics? See the guides and the methodology.

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