Cisco Systems (XSWX:CSCO) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Cisco Systems Forward PE Ratio Related Terms
Cisco Systems Forward PE Ratio Historical Data
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The historical data trend for Cisco Systems's Forward PE Ratio 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.
Cisco Systems Forward PE Ratio Chart
Cisco Systems Annual Data
Trend
2016-07
2017-07
2018-07
2019-07
2020-07
2021-07
2022-07
Forward PE Ratio
12.61
13.26
14.75
16.29
18.98
16.89
14.66
Cisco Systems Quarterly Data
2016-01
2016-04
2016-07
2016-10
2017-01
2017-04
2017-07
2017-10
2018-01
2018-04
2018-07
2018-10
2019-01
2019-04
2019-07
2019-10
2020-01
2020-04
2020-07
2020-10
2021-01
2021-04
2021-07
2021-10
2022-01
2022-04
2022-07
2022-10
2023-01
2026-01
2026-04
Forward PE Ratio
9.59
11.21
12.61
12.84
12.97
13.28
13.26
14.27
17.06
15.13
14.75
14.71
14.93
16.47
16.29
16.16
16.89
17.15
18.98
18.18
18.35
17.86
16.89
16.45
16.45
13.87
14.66
14.14
15.24
19.01
19.62
XSWX:CSCO vs CIEN, MSI, LITE: Forward PE Ratio Comparison
For the Communication Equipment subindustry, Cisco Systems's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Cisco Systems (XSWX:CSCO) has a Forward PE Ratio of 23.68 as of Jul. 06, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Cisco Systems and its competitors. According to the industry distribution chart, Cisco Systems ranks #501 out of 1018 companies in the Hardware industry, placing it in the top 49.2%.
Is Cisco Systems' Forward PE Ratio too high?
Cisco Systems' current Forward PE Ratio is 23.68. The Hardware industry median Forward PE Ratio is 23.96. Cisco Systems' value of 23.68 is 1.2% below this industry median. Based on the distribution chart, Cisco Systems ranks #501 out of 1018 companies in the Hardware industry, which is above 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' Forward PE Ratio compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #501 out of 1018 companies for Forward PE Ratio. This puts Cisco Systems in the upper half of its industry. The industry median Forward PE Ratio is 23.96. Cisco Systems' value of 23.68 is 1.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Hardware company?
The median Forward PE Ratio among Hardware companies is 23.96, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Forward PE Ratio of 23.68 is 1.2% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median Forward PE Ratio is 23.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Forward PE Ratio is 23.68. 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 Forward PE Ratio of 23.68. The stock's GF Value™ is CHF55.17, compared to a current price of CHF90.76 — trading 64.5% above its estimated fair value. The current Forward PE Ratio is 23.68 and 1.2% below the Hardware industry median of 23.96. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current Forward PE Ratio is 23.68 as of Jul. 06, 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 CHF90.76 is trading 64.5% above its estimated GF Value™ of CHF55.17.
Key valuation signals for XSWX:CSCO:
Forward PE Ratio: 23.68
GF Value™: CHF55.17 vs. price of CHF90.76 (64.5% above fair value)
Industry Position: 1.2% below the Hardware median (#501 of 1018)
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
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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