Is Cisco Systems, Inc. overvalued or undervalued?

As of 18 June 2025, Cisco Systems, Inc. has moved from a fair valuation to an expensive one. The company is currently overvalued based on its financial metrics. The P/E ratio stands at 25, which is higher than the industry average of approximately 24.57, while the EV to EBITDA ratio is 18.15, also above the peer average of 17.96. Additionally, the Price to Book Value is notably high at 5.69, indicating a premium over its book value.
In comparison to its peers, Cisco's valuation appears less attractive when juxtaposed with Accenture Plc, which has a P/E of 26.54, and Cognizant Technology Solutions Corp., which is more appealing at a P/E of 16.10. Despite Cisco's recent stock performance, which outpaced the S&P 500 with a 1-year return of 42.48% compared to 10.26%, the current valuation metrics suggest that the stock is not justified at its current price of 67.38.