Is Cisco Systems, Inc. overvalued or undervalued?

As of 7 November 2025, Cisco Systems, Inc. has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 25, a Price to Book Value of 5.69, and an EV to EBITDA of 22.65. In comparison, Accenture Plc, which is rated fair, has a P/E of 21.26, while Fortinet, Inc., rated very attractive, has a P/E of 32.08, indicating that Cisco's valuation is on the higher end relative to some peers.
Despite its strong performance in the past year with a return of 22.37% compared to the S&P 500's 12.65%, the company's multi-year returns show a decline relative to the benchmark, particularly over three and five years, where Cisco's returns of 59.53% and 89.37% lag behind the S&P 500's 76.76% and 91.73%, respectively. This trend reinforces the notion that Cisco may be overvalued at its current price of 71.07.