Cisco Systems Adjusts Valuation Amid Declining Profits and Strong Shareholder Returns

Feb 06 2026 03:58 PM IST
share
Share Via
Cisco Systems, Inc. has recently experienced a change in its valuation grade, now categorized as expensive. Key financial metrics include a P/E ratio of 25 and a return on equity of 22.92%. Despite a decline in profits over the past year, the company remains committed to shareholder returns through dividends.
Cisco Systems Adjusts Valuation Amid Declining Profits and Strong Shareholder Returns
Cisco Systems, Inc., a prominent player in the Computers - Software & Consulting industry, has recently undergone an adjustment in its evaluation. This revision reflects a shift in the company's valuation grade, which has transitioned from fair to expensive.
Key financial metrics indicate that Cisco's price-to-earnings (P/E) ratio stands at 25, while its price-to-book value is noted at 5.69. The enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio is recorded at 18.15, and the EV to sales ratio is 4.93. Additionally, the company boasts a robust return on equity (ROE) of 22.92% and a return on capital employed (ROCE) of 20.71%, showcasing its management efficiency. Despite a recent positive financial performance in July 2025, Cisco's profits have experienced a decline of 19.8% over the past year. The company has also declared a dividend per share of USD 5.27, reflecting its commitment to returning value to shareholders. With high institutional holdings at 79.58%, the stock's trading position remains notable within its peer group. Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News