Cisco Systems (XSWX:CSCO) 1-Year Sharpe Ratio: 1.89 (As of Jul. 13, 2026)


XSWX:CSCO Cisco Systems Inc XSWX:CSCO
81 GF Score
Price CHF96.59
GF Value CHF54.68
! 9 Warning Signs
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What is Cisco Systems 1-Year Sharpe Ratio?

Cisco Systems XSWX:CSCO +1.42% 81 1-Year Sharpe Ratio is 1.89 as of Jul. 13, 2026. GuruFocus rates XSWX:CSCO with a GF Score™ of 81/100 and a GF Value™ of CHF54.68. The stock has 9 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-13), Cisco Systems's 1-Year Sharpe Ratio is 1.89.

Cisco Systems  (XSWX:CSCO) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

Cisco Systems 1-Year Sharpe Ratio Related Terms

XSWX:CSCO vs CIEN, MSI, LITE: 1-Year Sharpe Ratio Comparison

For the Communication Equipment subindustry, Cisco Systems's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Hardware Industry

For the Hardware industry and Technology sector, Cisco Systems's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Cisco Systems's 1-Year Sharpe Ratio falls into.


XSWX:CSCO
81GF Score
Cisco Systems Inc XSWX:CSCO
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Cisco Systems 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 1.89 mean?
Cisco Systems (XSWX:CSCO) has a 1-Year Sharpe Ratio of 1.89 as of Jul. 13, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Cisco Systems and its competitors.
Is Cisco Systems' 1-Year Sharpe Ratio too high?
Cisco Systems' current 1-Year Sharpe Ratio is 1.89. Overall, Cisco Systems has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' 1-Year Sharpe Ratio compare to CIEN and MSI?
Cisco Systems' 1-Year Sharpe Ratio of 1.89 can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Hardware company?
A good 1-Year Sharpe Ratio depends on the Hardware industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Cisco Systems and its competitors. Cisco Systems's current 1-Year Sharpe Ratio is 1.89. 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 1-Year Sharpe Ratio of 1.89. The stock's GF Value™ is CHF54.68, compared to a current price of CHF96.59 — trading 76.6% above its estimated fair value. The current 1-Year Sharpe Ratio is 1.89. 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 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current 1-Year Sharpe Ratio is 1.89 as of Jul. 13, 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 CHF96.59 is trading 76.6% above its estimated GF Value™ of CHF54.68.

Key valuation signals for XSWX:CSCO:

  • 1-Year Sharpe Ratio: 1.89
  • GF Value™: CHF54.68 vs. price of CHF96.59 (76.6% above fair value)
  • GF Score™: 81/100 with 9 warning signs

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 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 XSWX:CSCO

1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF96.59
Price
CHF54.68
GF Value