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Cisco Systems (XSGO:CSCO) PE Ratio

: 17.22 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-04-23), Cisco Systems's share price is $56.65. Cisco Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 was $3.29. Therefore, Cisco Systems's PE Ratio for today is 17.22.

Good Sign:

Cisco Systems Inc stock PE Ratio (=14.63) is close to 5-year low of 13.65

During the past 13 years, Cisco Systems's highest PE Ratio was 695.00. The lowest was 11.00. And the median was 17.04.

Cisco Systems's EPS (Diluted) for the three months ended in Jan. 2024 was $0.65. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 was $3.29.

As of today (2024-04-23), Cisco Systems's share price is $56.65. Cisco Systems's EPS without NRI for the trailing twelve months (TTM) ended in Jan. 2024 was $3.43. Therefore, Cisco Systems's PE Ratio without NRI ratio for today is 16.50.

During the past 13 years, Cisco Systems's highest PE Ratio without NRI was 167.38. The lowest was 10.24. And the median was 15.52.

Cisco Systems's EPS without NRI for the three months ended in Jan. 2024 was $0.68. Its EPS without NRI for the trailing twelve months (TTM) ended in Jan. 2024 was $3.43.

During the past 12 months, Cisco Systems's average EPS without NRI Growth Rate was 17.80% per year. During the past 3 years, the average EPS without NRI Growth Rate was 5.90% per year. During the past 5 years, the average EPS without NRI Growth Rate was 96.10% per year. During the past 10 years, the average EPS without NRI Growth Rate was 6.50% per year.

During the past 13 years, Cisco Systems's highest 3-Year average EPS without NRI Growth Rate was 347.90% per year. The lowest was -74.70% per year. And the median was 11.25% per year.

Cisco Systems's EPS (Basic) for the three months ended in Jan. 2024 was $0.65. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jan. 2024 was $3.31.

Back to Basics: PE Ratio


Cisco Systems PE Ratio Historical Data

The historical data trend for Cisco Systems's 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.

* Premium members only.

Cisco Systems Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.23 17.84 22.15 16.09 16.95

Cisco Systems Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.83 17.00 16.95 15.75 15.25

Competitive Comparison

For the Communication Equipment subindustry, Cisco Systems's PE Ratio, along with its competitors' market caps and 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 PE Ratio Distribution

For the Hardware industry and Technology sector, Cisco Systems's PE Ratio distribution charts can be found below:

* The bar in red indicates where Cisco Systems's PE Ratio falls into.



Cisco Systems PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Cisco Systems's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=56.65/3.290
=17.22

Cisco Systems's Share Price of today is $56.65.
Cisco Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.29.


* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Cisco Systems  (XSGO:CSCO) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items 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 PE Ratio Related Terms

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Cisco Systems (XSGO:CSCO) 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 like 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 employees 80,000 employees and sells its products globally.