Cisco SystemsXSWX:CSCO -3.87%83 PEG Ratio is 38.21 as of Jun. 27, 2026, which is 1204% above its 10-year median of 2.93. GuruFocus rates XSWX:CSCO with a GF Score™ of 83/100 and a GF Value™ of CHF55.99 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 859 Hardware companies, Cisco Systems ranks worse than 95.93% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Cisco Systems's PEG Ratio or its related term are showing as below:
XSWX:CSCO'
s PEG Ratio Range Over the Past 10 Years
Min: 1.43 Med: 2.93 Max: 36.99
Current: 36.99
During the past 13 years, Cisco Systems's highest PEG Ratio was 36.99. The lowest was 1.43. And the median was 2.93.
XSWX:CSCO's PEG Ratio is ranked worse than 95.93% of 859
companies
in the Hardware industry
Industry Median: 2.27
vs XSWX:CSCO: 36.99
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Cisco Systems (XSWX:CSCO) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Cisco Systems PEG Ratio Related Terms
Cisco Systems PEG Ratio Historical Data
* Premium members only.
The historical data trend for Cisco Systems's PEG 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.
XSWX:CSCO vs CIEN, MSI, LITE: PEG Ratio Comparison
For the Communication Equipment subindustry, Cisco Systems's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Cisco Systems's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Cisco Systems (XSWX:CSCO) has a PEG Ratio of 38.21 as of Jun. 27, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Cisco Systems and its competitors. This is 1204% above median its historical median of 2.93. Over the past decade, Cisco Systems' PEG Ratio has ranged from 1.43 to 36.99. According to the industry distribution chart, Cisco Systems ranks #824 out of 859 companies in the Hardware industry, placing it in the top 95.9%.
Is Cisco Systems' PEG Ratio too high?
Cisco Systems' current PEG Ratio of 38.21 is 1204% above median its 10-year median of 2.93. Over the past 10 years, this metric has ranged from a low of 1.43 to a high of 36.99. The Hardware industry median PEG Ratio is 2.27. Cisco Systems' value of 38.21 is 1583.3% above this industry median. Based on the distribution chart, Cisco Systems ranks #824 out of 859 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Cisco Systems has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' PEG Ratio compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #824 out of 859 companies for PEG Ratio. This places Cisco Systems in the lower half of its industry. The industry median PEG Ratio is 2.27. Cisco Systems' value of 38.21 is 1583.3% above this benchmark. Historically, Cisco Systems' own PEG Ratio has ranged from 1.43 to 36.99 over the past decade. While the company's 10-year median is 2.93 vs. the industry median of 2.27, Cisco Systems has consistently been above 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 PEG Ratio for a Hardware company?
The median PEG Ratio among Hardware companies is 2.27, based on 859 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current PEG Ratio of 38.21 is 1583.3% above 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median PEG Ratio is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current PEG Ratio is 38.21, which is 1204% above median its own 10-year median of 2.93. 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 (XSWX:CSCO) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF55.99, compared to a current price of CHF93.27 — trading 66.6% above its estimated fair value. The current PEG Ratio is 38.21, which is 1204% above median its 10-year median of 2.93 and 1583.3% above the Hardware industry median of 2.27. Cisco Systems' overall GF Score™ is 83/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current PEG Ratio is 38.21 as of Jun. 27, 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 CHF93.27 is trading 66.6% above its estimated GF Value™ of CHF55.99.
GuruFocus considers Cisco Systems to be Significantly Overvalued.
Key valuation signals for XSWX:CSCO:
PEG Ratio: 38.21 (1204% above median its 10-year median of 2.93)
GF Value™: CHF55.99 vs. price of CHF93.27 (66.6% above fair value)
Industry Position: 1583.3% above the Hardware median (#824 of 859)
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.
83GF Score
Get the complete analysis for XSWX:CSCO
PEG Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:CSCO has been successfully added to your 
