Cisco Systems Valuation
| CIS Stock | 58.61 0.20 0.34% |
At this time, the firm appears to be undervalued. Cisco Systems shows a prevailing Real Value of USD63.69 per share. The current price of the firm is USD58.61. Our model approximates the value of Cisco Systems from analyzing the firm fundamentals such as Profit Margin of 0.21 %, return on equity of 0.28, and Current Valuation of 181.81 B as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Cisco Systems' price fluctuation is very steady at this time. Calculation of the real value of Cisco Systems is based on 3 months time horizon. Increasing Cisco Systems' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Cisco Systems' intrinsic value may or may not be the same as its current market price of 58.61, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 58.61 | Real 63.69 | Hype 58.61 | Naive 57.61 |
The intrinsic value of Cisco Systems' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Cisco Systems' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Cisco Systems helps investors to forecast how Cisco stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Cisco Systems more accurately as focusing exclusively on Cisco Systems' fundamentals will not take into account other important factors: Cisco Systems Total Value Analysis
Cisco Systems is currently projected to have takeover price of 181.81 B with market capitalization of 184.99 B, debt of 8.42 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Cisco Systems fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
181.81 B | 184.99 B | 8.42 B |
Cisco Systems Investor Information
About 77.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.35. Cisco Systems last dividend was issued on the 4th of April 2023. The entity had 2:1 split on the 23rd of March 2000. Based on the key indicators related to Cisco Systems' liquidity, profitability, solvency, and operating efficiency, Cisco Systems is not in a good financial situation at the moment. It has a very high risk of going through financial straits in August.Cisco Systems Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cisco Systems has an asset utilization ratio of 54.85 percent. This implies that the Company is making USD0.55 for each dollar of assets. An increasing asset utilization means that Cisco Systems is more efficient with each dollar of assets it utilizes for everyday operations.Cisco Systems Ownership Allocation
Cisco Systems holds a total of 4.1 Billion outstanding shares. The majority of Cisco Systems outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cisco Systems to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cisco Systems. Please pay attention to any change in the institutional holdings of Cisco Systems as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Cisco Systems Profitability Analysis
The company reported the revenue of 51.56 B. Net Income was 11.81 B with profit before overhead, payroll, taxes, and interest of 32.25 B.About Cisco Systems Valuation
The stock valuation mechanism determines Cisco Systems' current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Cisco Systems based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cisco Systems. We calculate exposure to Cisco Systems's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Cisco Systems's related companies.8 Steps to conduct Cisco Systems' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Cisco Systems' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Cisco Systems' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Cisco Systems' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Cisco Systems' revenue streams: Identify Cisco Systems' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Cisco Systems' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Cisco Systems' growth potential: Evaluate Cisco Systems' management, business model, and growth potential.
- Determine Cisco Systems' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Cisco Systems' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Tools for Cisco Stock Analysis
When running Cisco Systems' price analysis, check to measure Cisco Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cisco Systems is operating at the current time. Most of Cisco Systems' value examination focuses on studying past and present price action to predict the probability of Cisco Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cisco Systems' price. Additionally, you may evaluate how the addition of Cisco Systems to your portfolios can decrease your overall portfolio volatility.