Cisco Systems (FRA:CIS) ROCE %: 20.52% (As of Apr. 2026)


FRA:CIS Cisco Systems Inc FRA:CIS
81 GF Score
Price €106.96
GF Value €57.23
Valuation Significantly Overvalued
! 9 Warning Signs
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What is Cisco Systems ROCE %?

Cisco Systems FRA:CIS +1.73% 81 ROCE % is 20.52% as of Apr. 2026. GuruFocus rates FRA:CIS with a GF Score™ of 81/100 and a GF Value™ of €57.23 (Significantly Overvalued). The stock has 9 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cisco Systems's annualized ROCE % for the quarter that ended in Apr. 2026 was 20.52%.

Cisco Systems  (FRA:CIS) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Cisco Systems ROCE % Related Terms

Cisco Systems ROCE % Historical Data

* Premium members only.

The historical data trend for Cisco Systems's ROCE % 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.

Cisco Systems ROCE % Chart

Cisco Systems Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.19 22.88 21.74 17.31 14.31

Cisco Systems Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
ROCE % 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 15.44 15.32 17.33 18.57 20.52
FRA:CIS
81GF Score
Cisco Systems Inc FRA:CIS
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Cisco Systems ROCE % Calculation

Cisco Systems's annualized ROCE % for the fiscal year that ended in Jul. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jul. 2025 )  (A: Jul. 2024 )(A: Jul. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jul. 2025 )  (A: Jul. 2024 )(A: Jul. 2025 )
=10877.901/( ( (114708.786 - 37418.448) + (104803.387 - 30049.848) )/ 2 )
=10877.901/( (77290.338+74753.539)/ 2 )
=10877.901/76021.9385
=14.31 %

Cisco Systems's ROCE % of for the quarter that ended in Apr. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=15102.72/( ( (104988.721 - 31304.886) + (107341.83 - 33807.555) )/ 2 )
=15102.72/( ( 73683.835 + 73534.275 )/ 2 )
=15102.72/73609.055
=20.52 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 20.52% mean?
Cisco Systems (FRA:CIS) has a ROCE % of 20.52% as of Apr. 2026.
Is Cisco Systems' ROCE % too high?
Cisco Systems' current ROCE % is 20.52%. The Hardware industry median ROCE % is 5.82. Cisco Systems' value of 20.52% is 252.6% above this industry median. Overall, Cisco Systems has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' ROCE % compare to CIEN and MSI?
Cisco Systems' ROCE % of 20.52% can be compared against companies in the Hardware industry. The industry median ROCE % is 5.82. Cisco Systems' value of 20.52% is 252.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Hardware company?
The median ROCE % among Hardware companies is 5.82, based on 2,445 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current ROCE % of 20.52% is 252.6% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median ROCE % is 5.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current ROCE % is 20.52%. 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 (FRA:CIS) is currently considered Significantly Overvalued. The stock's GF Value™ is €57.23, compared to a current price of €106.96 — trading 86.9% above its estimated fair value. The current ROCE % is 20.52% and 252.6% above the Hardware industry median of 5.82. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Cisco Systems (FRA:CIS), the current ROCE % is 20.52% 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 (FRA:CIS) Overvalued in 2026?

Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued. The current stock price of €106.96 is trading 86.9% above its estimated GF Value™ of €57.23. GuruFocus considers Cisco Systems to be Significantly Overvalued.

Key valuation signals for FRA:CIS:

  • ROCE %: 20.52%
  • GF Value™: €57.23 vs. price of €106.96 (86.9% above fair value)
  • GF Score™: 81/100 with 9 warning signs
  • Industry Position: 252.6% above the Hardware median

No single metric tells the full story. See the FRA:CIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

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 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

Get the complete analysis for FRA:CIS

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€106.96
Price
€57.23
GF Value