Cisco Systems (FRA:CIS) Margin of Safety % (DCF Earnings Based): -170.99% (As of Jun. 24, 2026)


FRA:CIS Cisco Systems Inc FRA:CIS
81 GF Score
Price €106.96
GF Value €57.23
Valuation Significantly Overvalued
! 9 Warning Signs
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What is Cisco Systems Margin of Safety % (DCF Earnings Based)?

Cisco Systems FRA:CIS +1.73% 81 Margin of Safety % (DCF Earnings Based) is -170.99% as of Jun. 24, 2026. GuruFocus rates FRA:CIS with a GF Score™ of 81/100 and a GF Value™ of €57.23 (Significantly Overvalued). The stock has 9 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-24), Cisco Systems's Predictability Rank is 2.5-Stars. Cisco Systems's intrinsic value calculated from the Discounted Earnings model is €39.47 and current share price is €106.96. Consequently,

Cisco Systems's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -170.99%.

FRA:CIS vs CIEN, MSI, LITE: Margin of Safety % (DCF Earnings Based) Comparison

For the Communication Equipment subindustry, Cisco Systems's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) vs Hardware Industry

For the Hardware industry and Technology sector, Cisco Systems's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Cisco Systems's Margin of Safety % (DCF Earnings Based) falls into.


FRA:CIS
81GF Score
Cisco Systems Inc FRA:CIS
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Cisco Systems Margin of Safety % (DCF Earnings Based) Calculation

Cisco Systems's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(39.47-106.96)/39.47
=-170.99 %

* 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.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -170.99% mean?
Cisco Systems (FRA:CIS) has a Margin of Safety % (DCF Earnings Based) of -170.99% as of Jun. 24, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Cisco Systems.
Is Cisco Systems' Margin of Safety % (DCF Earnings Based) too high?
Cisco Systems' current Margin of Safety % (DCF Earnings Based) is -170.99%. Overall, Cisco Systems has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Margin of Safety % (DCF Earnings Based) compare to CIEN and MSI?
Cisco Systems' Margin of Safety % (DCF Earnings Based) of -170.99% can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Hardware company?
A good Margin of Safety % (DCF Earnings Based) depends on the Hardware industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Cisco Systems. Cisco Systems's current Margin of Safety % (DCF Earnings Based) is -170.99%. 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 (FRA:CIS) is currently considered Significantly Overvalued. The stock's GF Value™ is €57.23, compared to a current price of €106.96 — trading 86.9% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -170.99%. 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 Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Cisco Systems (FRA:CIS), the current Margin of Safety % (DCF Earnings Based) is -170.99% as of Jun. 24, 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 (FRA:CIS) Overvalued in 2026?

Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued. The current stock price of €106.96 is trading 86.9% above its estimated GF Value™ of €57.23. GuruFocus considers Cisco Systems to be Significantly Overvalued.

Key valuation signals for FRA:CIS:

  • Margin of Safety % (DCF Earnings Based): -170.99%
  • GF Value™: €57.23 vs. price of €106.96 (86.9% above fair value)
  • GF Score™: 81/100 with 9 warning signs

No single metric tells the full story. See the FRA:CIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Cisco Systems Business Description

Address 170 West Tasman Drive, San Jose, CA, USA, 95134-1706
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 FRA:CIS

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€106.96
Price
€57.23
GF Value