Cisco SystemsXSWX:CSCO 81 ROC (Joel Greenblatt) % is 716.10% as of Apr. 2026, which is 27% above its 10-year median of 563.53. GuruFocus rates XSWX:CSCO with a GF Score™ of 81/100 and a GF Value™ of CHF55.37. The stock has 9 warning signs investors should review. Among 2,493 Hardware companies, Cisco Systems ranks better than 99.28% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Cisco Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 716.10%.
The historical rank and industry rank for Cisco Systems's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:CSCO'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 385.12 Med: 563.53 Max: 771.44
Current: 683.68
During the past 13 years, Cisco Systems's highest ROC (Joel Greenblatt) % was 771.44%. The lowest was 385.12%. And the median was 563.53%.
XSWX:CSCO's ROC (Joel Greenblatt) % is ranked better than 99.28% of 2493
companies
in the Hardware industry
Industry Median: 10.35
vs XSWX:CSCO: 683.68
Cisco Systems's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 2.50% per year.
Cisco Systems (XSWX:CSCO) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Cisco Systems ROC (Joel Greenblatt) % Related Terms
Cisco Systems ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Cisco Systems's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Communication Equipment subindustry, Cisco Systems's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Cisco Systems's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 716.10% mean?
Cisco Systems (XSWX:CSCO) has a ROC (Joel Greenblatt) % of 716.10% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Cisco Systems and its competitors. This is 27% above median its historical median of 563.53. Over the past decade, Cisco Systems' ROC (Joel Greenblatt) % has ranged from 385.12 to 771.44. According to the industry distribution chart, Cisco Systems ranks #18 out of 2493 companies in the Hardware industry, placing it in the top 0.7%.
Is Cisco Systems' ROC (Joel Greenblatt) % too high?
Cisco Systems' current ROC (Joel Greenblatt) % of 716.10% is 27% above median its 10-year median of 563.53. Over the past 10 years, this metric has ranged from a low of 385.12 to a high of 771.44. The Hardware industry median ROC (Joel Greenblatt) % is 10.35. Cisco Systems' value of 716.10% is 6818.8% above this industry median. Based on the distribution chart, Cisco Systems ranks #18 out of 2493 companies in the Hardware industry, which is in the top quartile — a strong position 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' ROC (Joel Greenblatt) % compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #18 out of 2493 companies for ROC (Joel Greenblatt) %. This places Cisco Systems in the top 1% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 10.35. Cisco Systems' value of 716.10% is 6818.8% above this benchmark. Historically, Cisco Systems' own ROC (Joel Greenblatt) % has ranged from 385.12 to 771.44 over the past decade. While the company's 10-year median is 563.53 vs. the industry median of 10.35, 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 ROC (Joel Greenblatt) % for a Hardware company?
The median ROC (Joel Greenblatt) % among Hardware companies is 10.35, based on 2,493 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current ROC (Joel Greenblatt) % of 716.10% is 6818.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median ROC (Joel Greenblatt) % is 10.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current ROC (Joel Greenblatt) % is 716.10%, which is 27% above median its own 10-year median of 563.53. 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 ROC (Joel Greenblatt) % of 716.10%. The stock's GF Value™ is CHF55.37, compared to a current price of CHF94.69 — trading 71% above its estimated fair value. The current ROC (Joel Greenblatt) % is 716.10%, which is 27% above median its 10-year median of 563.53 and 6818.8% above the Hardware industry median of 10.35. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current ROC (Joel Greenblatt) % is 716.10% 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 CHF94.69 is trading 71% above its estimated GF Value™ of CHF55.37.
Key valuation signals for XSWX:CSCO:
ROC (Joel Greenblatt) %: 716.10% (27% above median its 10-year median of 563.53)
GF Value™: CHF55.37 vs. price of CHF94.69 (71% above fair value)
Industry Position: 6818.8% above the Hardware median (#18 of 2493)
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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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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