In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Cisco Systems's Net-Net Working Capital for the quarter that ended in Apr. 2026 was CHF-10.56.
The industry rank for Cisco Systems's Net-Net Working Capital or its related term are showing as below:
XSWX:CSCO's Price-to-Net-Net-Working-Capital is not ranked *
in the Hardware industry.
Industry Median: 9.475 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Cisco Systems (XSWX:CSCO) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Cisco Systems Net-Net Working Capital Related Terms
Cisco Systems Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Cisco Systems's Net-Net Working Capital 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: Net-Net Working Capital Comparison
For the Communication Equipment subindustry, Cisco Systems's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Price-to-Net-Net-Working-Capital 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of CHF-10.56 mean?
Cisco Systems (XSWX:CSCO) has a Net-Net Working Capital of CHF-10.56 as of Apr. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Cisco Systems According to the industry distribution chart, Cisco Systems ranks #999999 out of 1222 companies in the Hardware industry.
Is Cisco Systems' Net-Net Working Capital too high?
Cisco Systems' current Net-Net Working Capital is CHF-10.56. Based on the distribution chart, Cisco Systems ranks #999999 out of 1222 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Cisco Systems has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Net-Net Working Capital compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #999999 out of 1222 companies for Net-Net Working Capital. This places Cisco Systems in the lower half of its industry. The industry median Net-Net Working Capital is 9.48. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Hardware company?
The median Net-Net Working Capital among Hardware companies is 9.48, based on 1,222 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Cisco Systems For the Hardware industry, the median Net-Net Working Capital is 9.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Net-Net Working Capital is CHF-10.56. 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 Net-Net Working Capital of CHF-10.56. 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 Net-Net Working Capital is CHF-10.56. 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 Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current Net-Net Working Capital is CHF-10.56 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:
Net-Net Working Capital: CHF-10.56
GF Value™: CHF54.68 vs. price of CHF96.59 (76.6% above fair value)
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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