Is Cisco Systems, Inc. overvalued or undervalued?

As of 17 October 2025, Cisco Systems, Inc. has moved from a very expensive valuation to a fair one. The company appears fairly valued based on its current metrics, with a P/E ratio of 25, an EV to EBITDA of 18.15, and a Price to Book Value of 5.69. In comparison, Accenture Plc has a P/E of 21.26 and an EV to EBITDA of 13.98, while International Business Machines Corp. is considered very expensive with a P/E of 82.85.
Cisco's stock has outperformed the S&P 500 in the short term, with a year-to-date return of 18.46% compared to the S&P 500's 13.30%. However, over longer periods, such as the 3-year and 5-year returns, Cisco's performance lags behind the S&P 500, indicating potential challenges ahead.