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Cisco Systems (Cisco Systems) PS Ratio : 3.48 (As of Jun. 24, 2024)


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What is Cisco Systems PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Cisco Systems's share price is $47.28. Cisco Systems's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2024 was $13.58. Hence, Cisco Systems's PS Ratio for today is 3.48.

Good Sign:

Cisco Systems Inc stock PS Ratio (=3.48) is close to 3-year low of 3.25

The historical rank and industry rank for Cisco Systems's PS Ratio or its related term are showing as below:

CSCO' s PS Ratio Range Over the Past 10 Years
Min: 2.24   Med: 3.57   Max: 5.29
Current: 3.49

During the past 13 years, Cisco Systems's highest PS Ratio was 5.29. The lowest was 2.24. And the median was 3.57.

CSCO's PS Ratio is ranked worse than
74.93% of 2461 companies
in the Hardware industry
Industry Median: 1.49 vs CSCO: 3.49

Cisco Systems's Revenue per Sharefor the three months ended in Apr. 2024 was $3.13. Its Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2024 was $13.58.

Warning Sign:

Cisco Systems Inc revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Cisco Systems was 2.00% per year. During the past 3 years, the average Revenue per Share Growth Rate was 6.20% per year. During the past 5 years, the average Revenue per Share Growth Rate was 5.20% per year. During the past 10 years, the average Revenue per Share Growth Rate was 4.30% per year.

During the past 13 years, Cisco Systems's highest 3-Year average Revenue per Share Growth Rate was 329.60% per year. The lowest was -32.70% per year. And the median was 9.70% per year.

Back to Basics: PS Ratio


Cisco Systems PS Ratio Historical Data

The historical data trend for Cisco Systems's PS 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 PS Ratio Chart

Cisco Systems Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.75 4.06 4.71 3.69 3.75

Cisco Systems Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
PS 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 3.55 3.75 3.68 3.59 3.46

Competitive Comparison of Cisco Systems's PS Ratio

For the Communication Equipment subindustry, Cisco Systems's PS Ratio, along with its competitors' market caps and PS 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's PS Ratio Distribution in the Hardware Industry

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

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



Cisco Systems PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Cisco Systems's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=47.28/13.578
=3.48

Cisco Systems's Share Price of today is $47.28.
Cisco Systems's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $13.58.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Cisco Systems  (NAS:CSCO) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS 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

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Cisco Systems PS Ratio Related Terms

Thank you for viewing the detailed overview of Cisco Systems's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Cisco Systems (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 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.
Executives
Richard Scott Herren officer: EVP and CFO 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309
Maria Victoria Wong officer: SVP & Chief Acctg Officer C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Deborah L Stahlkopf officer: EVP and Chief Legal Officer C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Jeffery S. Sharritts officer: EVP & Chief Cust & Prtnr Offcr 1200 ABERNATHY RD., NE, STE 1200, ATLANTA GA 30328
Mark Garrett director 106 EAST BABCOCK STREET SUITE 3A, BOZEMAN MT 59715
Maria Martinez officer: EVP, Chief Customer Exp Offcr THE LANDMARK @ 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105
Charles Robbins officer: SVP, Worldwide Sales 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Daniel H Schulman director C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Roderick C Mcgeary director 1421 MCCRTHY BLVD, MILPITAS CA 95035
Prat Bhatt officer: VP, Corporate Controller & PAO 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Kristina M Johnson director 19 HEATH PL, DURHAM NC 27705
Sarah Rae Murphy director C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Geraldine Elliott officer: EVP, Chief Sales & Mktg Offcr 1194 N. MATHILDA AVE., SUNNYVALE CA 94089
M Michele Burns director C/O MARSH &MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036-2774
Mark D Chandler officer: SVP, LglSrvs, GenCnsl & Secty 170 W TASMAN DRIVE, SAN JOSE CA 95134

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