Is Cisco Systems, Inc. (CSCO) Undervalued?
Based on the current stock price of $78.16 and a P/E ratio of 30.18,Cisco Systems, Inc. has a PEG ratio of 3.69.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 3.69, CSCO appears to be potentially overvalued relative to its growth rate of 8.18%.
Based on a PEG ratio of 2.94 (adjusted for dividends).
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How we analyzed CSCO
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 30.18and dividing it by the annual growth rate of 8.18%.
PEG = 30.18 (P/E) ÷ 8.18 (Growth) = 3.69
Frequently Asked Questions about CSCO
What is the current PEG Ratio for Cisco Systems, Inc. (CSCO)?+
The current PEG Ratio for Cisco Systems, Inc. is 3.69. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is CSCO stock undervalued right now?+
Based on the PEG ratio of 3.69, Cisco Systems, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for CSCO?+
The PEGY ratio for Cisco Systems, Inc. is 2.94. This metric accounts for dividend yield (2.10%), providing a more complete valuation picture.