Cisco SystemsXSWX:CSCO -3.87%83 FCF Yield % is 2.63 as of Jun. 27, 2026, which is 61% below its 10-year median of 6.69. GuruFocus rates XSWX:CSCO with a GF Score™ of 83/100 and a GF Value™ of CHF55.99 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,492 Hardware companies, Cisco Systems ranks better than 68.06% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Cisco Systems FCF Yield % Related Terms
Cisco Systems FCF Yield % Historical Data
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The historical data trend for Cisco Systems's FCF Yield % 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: FCF Yield % Comparison
For the Communication Equipment subindustry, Cisco Systems's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Cisco Systems's FCF Yield % 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.
Cisco Systems (XSWX:CSCO) has a FCF Yield % of 2.63 as of Jun. 27, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Cisco Systems and its competitors. This is 61% below median its historical median of 6.69. Over the past decade, Cisco Systems' FCF Yield % has ranged from 2.43 to 9.78. According to the industry distribution chart, Cisco Systems ranks #796 out of 2492 companies in the Hardware industry, placing it in the top 31.9%.
Is Cisco Systems' FCF Yield % too high?
Cisco Systems' current FCF Yield % of 2.63 is 61% below median its 10-year median of 6.69. Over the past 10 years, this metric has ranged from a low of 2.43 to a high of 9.78. The Hardware industry median FCF Yield % is 0.18. Cisco Systems' value of 2.63 is 1361.1% above this industry median. Based on the distribution chart, Cisco Systems ranks #796 out of 2492 companies in the Hardware industry, which is above the industry midpoint. Overall, Cisco Systems has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' FCF Yield % compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #796 out of 2492 companies for FCF Yield %. This puts Cisco Systems in the upper half of its industry. The industry median FCF Yield % is 0.18. Cisco Systems' value of 2.63 is 1361.1% above this benchmark. Historically, Cisco Systems' own FCF Yield % has ranged from 2.43 to 9.78 over the past decade. While the company's 10-year median is 6.69 vs. the industry median of 0.18, Cisco Systems has consistently been above 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 FCF Yield % for a Hardware company?
The median FCF Yield % among Hardware companies is 0.18, based on 2,492 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current FCF Yield % of 2.63 is 1361.1% above 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median FCF Yield % is 0.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current FCF Yield % is 2.63, which is 61% below median its own 10-year median of 6.69. 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?
Based on GuruFocus' analysis, Cisco Systems (XSWX:CSCO) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF55.99, compared to a current price of CHF93.27 — trading 66.6% above its estimated fair value. The current FCF Yield % is 2.63, which is 61% below median its 10-year median of 6.69 and 1361.1% above the Hardware industry median of 0.18. Cisco Systems' overall GF Score™ is 83/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current FCF Yield % is 2.63 as of Jun. 27, 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 CHF93.27 is trading 66.6% above its estimated GF Value™ of CHF55.99.
GuruFocus considers Cisco Systems to be Significantly Overvalued.
Key valuation signals for XSWX:CSCO:
FCF Yield %: 2.63 (61% below median its 10-year median of 6.69)
GF Value™: CHF55.99 vs. price of CHF93.27 (66.6% above fair value)
Industry Position: 1361.1% above the Hardware median (#796 of 2492)
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.
83GF Score
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