Cisco SystemsMEX:CSCO -1.11%67 Interest Coverage is 10.50 as of Apr. 2026, which is 42% below its 10-year median of 18.03. GuruFocus rates MEX:CSCO with a GF Score™ of 67/100 and a GF Value™ of MXN1,163.10 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,673 Hardware companies, Cisco Systems ranks worse than 58.22% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Cisco Systems's
Operating Income
for the
three
months ended in Apr. 2026 was MXN69,346 Mil. Cisco Systems's Interest Expense for the
three
months ended in Apr. 2026 was MXN-6,604 Mil.
Cisco Systems's interest coverage for the quarter that ended in Apr. 2026 was 10.50.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Cisco Systems's Interest Coverage or its related term are showing as below:
MEX:CSCO'
s Interest Coverage Range Over the Past 10 Years
Min: 7.85 Med: 18.03 Max: 38.82
Current: 9.83
MEX:CSCO's Interest Coverage is ranked worse than 58.22% of 1673
companies
in the Hardware industry
Industry Median: 13.73
vs MEX:CSCO: 9.83
Cisco Systems (MEX:CSCO) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Cisco Systems Interest Coverage Related Terms
Cisco Systems Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cisco Systems's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:CSCO vs CIEN, MSI, LITE: Interest Coverage Comparison
For the Communication Equipment subindustry, Cisco Systems's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MEX:CSCO) has a Interest Coverage of 10.50 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cisco Systems and its competitors. This is 42% below median its historical median of 18.03. Over the past decade, Cisco Systems' Interest Coverage has ranged from 7.85 to 38.82. According to the industry distribution chart, Cisco Systems ranks #974 out of 1673 companies in the Hardware industry, placing it in the top 58.2%.
Is Cisco Systems' Interest Coverage too high?
Cisco Systems' current Interest Coverage of 10.50 is 42% below median its 10-year median of 18.03. Over the past 10 years, this metric has ranged from a low of 7.85 to a high of 38.82. The Hardware industry median Interest Coverage is 13.73. Cisco Systems' value of 10.50 is 23.5% below this industry median. Based on the distribution chart, Cisco Systems ranks #974 out of 1673 companies in the Hardware industry, which is below the industry midpoint. Overall, Cisco Systems has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Interest Coverage compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #974 out of 1673 companies for Interest Coverage. This places Cisco Systems in the lower half of its industry. The industry median Interest Coverage is 13.73. Cisco Systems' value of 10.50 is 23.5% below this benchmark. Historically, Cisco Systems' own Interest Coverage has ranged from 7.85 to 38.82 over the past decade. While the company's 10-year median is 18.03 vs. the industry median of 13.73, 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 Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,673 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Interest Coverage of 10.50 is 23.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Interest Coverage is 10.50, which is 42% below median its own 10-year median of 18.03. 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 (MEX:CSCO) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,163.10, compared to a current price of MXN2,083.40 — trading 79.1% above its estimated fair value. The current Interest Coverage is 10.50, which is 42% below median its 10-year median of 18.03 and 23.5% below the Hardware industry median of 13.73. Cisco Systems' overall GF Score™ is 67/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Cisco Systems (MEX:CSCO), the current Interest Coverage is 10.50 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 (MEX:CSCO) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of MXN2,083.40 is trading 79.1% above its estimated GF Value™ of MXN1,163.10.
GuruFocus considers Cisco Systems to be Significantly Overvalued.
Key valuation signals for MEX:CSCO:
Interest Coverage: 10.50 (42% below median its 10-year median of 18.03)
GF Value™: MXN1,163.10 vs. price of MXN2,083.40 (79.1% above fair value)
Industry Position: 23.5% below the Hardware median (#974 of 1673)
No single metric tells the full story. See the MEX: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.
67GF Score
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