A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Cisco Systems's Debt-to-EBITDA or its related term are showing as below:
XSWX:CSCO'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.48 Med: 1.5 Max: 2.19
Current: 1.73
During the past 13 years, the highest Debt-to-EBITDA Ratio of Cisco Systems was 2.19. The lowest was 0.48. And the median was 1.50.
XSWX:CSCO's Debt-to-EBITDA is ranked worse than 50.17% of 1788
companies
in the Hardware industry
Industry Median: 1.715
vs XSWX:CSCO: 1.73
Cisco Systems (XSWX:CSCO) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Cisco Systems Debt-to-EBITDA Related Terms
Cisco Systems Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Cisco Systems's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:CSCO vs CIEN, MSI, LITE: Debt-to-EBITDA Comparison
For the Communication Equipment subindustry, Cisco Systems's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cisco Systems Debt-to-EBITDA vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
Cisco Systems (XSWX:CSCO) has a Debt-to-EBITDA of 1.55 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Cisco Systems. This is near median its historical median of 1.50. Over the past decade, Cisco Systems' Debt-to-EBITDA has ranged from 0.48 to 2.19. According to the industry distribution chart, Cisco Systems ranks #897 out of 1788 companies in the Hardware industry, placing it in the top 50.2%.
Is Cisco Systems' Debt-to-EBITDA too high?
Cisco Systems' current Debt-to-EBITDA of 1.55 is near median its 10-year median of 1.50. Over the past 10 years, this metric has ranged from a low of 0.48 to a high of 2.19. The Hardware industry median Debt-to-EBITDA is 1.72. Cisco Systems' value of 1.55 is 9.6% below this industry median. Based on the distribution chart, Cisco Systems ranks #897 out of 1788 companies in the Hardware industry, which is below the industry midpoint. Overall, Cisco Systems has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Debt-to-EBITDA compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #897 out of 1788 companies for Debt-to-EBITDA. This places Cisco Systems in the lower half of its industry. The industry median Debt-to-EBITDA is 1.72. Cisco Systems' value of 1.55 is 9.6% below this benchmark. Historically, Cisco Systems' own Debt-to-EBITDA has ranged from 0.48 to 2.19 over the past decade. While the company's 10-year median is 1.50 vs. the industry median of 1.72, Cisco Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Hardware company?
The median Debt-to-EBITDA among Hardware companies is 1.72, based on 1,788 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Debt-to-EBITDA of 1.55 is 9.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Cisco Systems. For the Hardware industry, the median Debt-to-EBITDA is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Debt-to-EBITDA is 1.55, which is near median its own 10-year median of 1.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cisco Systems stock overvalued right now?
Cisco Systems (XSWX:CSCO) has a current Debt-to-EBITDA of 1.55. The stock's GF Value™ is CHF54.68, compared to a current price of CHF96.59 — trading 76.6% above its estimated fair value. The current Debt-to-EBITDA is 1.55, which is near median its 10-year median of 1.50 and 9.6% below the Hardware industry median of 1.72. Cisco Systems' overall GF Score™ is 81/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current Debt-to-EBITDA is 1.55 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cisco Systems (XSWX:CSCO) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of CHF96.59 is trading 76.6% above its estimated GF Value™ of CHF54.68.
Key valuation signals for XSWX:CSCO:
Debt-to-EBITDA: 1.55 (near median its 10-year median of 1.50)
GF Value™: CHF54.68 vs. price of CHF96.59 (76.6% above fair value)
Industry Position: 9.6% below the Hardware median (#897 of 1788)
No single metric tells the full story. See the XSWX:CSCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software such as firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employs 80,000 people and sells its products globally.
81GF Score
Get the complete analysis for XSWX:CSCO
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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