Price to Operating Profit (P/OP)
since 2005
Calculation
Cisco Systems Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep 2, 2026 | 28.08 | = | 109.46 | ÷ | 3.90 | 3.90 | = | 15,368 | ÷ | 3,942,586,873 | |
| Sep 3, 2025 | 22.75 | = | 67.67 | ÷ | 2.97 | 2.97 | = | 11,760 | ÷ | 3,953,196,953 | |
| Sep 5, 2024 | 16.10 | = | 49.13 | ÷ | 3.05 | 3.05 | = | 12,181 | ÷ | 3,990,734,794 | |
| Sep 7, 2023 | 15.32 | = | 56.79 | ÷ | 3.71 | 3.71 | = | 15,031 | ÷ | 4,054,857,783 | |
| Sep 8, 2022 | 13.35 | = | 45.37 | ÷ | 3.40 | 3.40 | = | 13,969 | ÷ | 4,108,844,167 | |
| Sep 9, 2021 | 19.26 | = | 58.60 | ÷ | 3.04 | 3.04 | = | 12,833 | ÷ | 4,217,735,917 | |
| Sep 3, 2020 | 12.73 | = | 40.95 | ÷ | 3.22 | 3.22 | = | 13,620 | ÷ | 4,233,425,297 | |
| Sep 5, 2019 | 14.46 | = | 48.42 | ÷ | 3.35 | 3.35 | = | 14,219 | ÷ | 4,245,290,230 | |
| Sep 6, 2018 | 17.56 | = | 47.28 | ÷ | 2.69 | 2.69 | = | 12,309 | ÷ | 4,571,334,136 | |
| Sep 7, 2017 | 13.14 | = | 31.76 | ÷ | 2.42 | 2.42 | = | 11,973 | ÷ | 4,951,955,851 | |
| Sep 8, 2016 | 12.46 | = | 31.47 | ÷ | 2.52 | 2.52 | = | 12,660 | ÷ | 5,014,353,833 | |
| Sep 8, 2015 | 12.36 | = | 26.30 | ÷ | 2.13 | 2.13 | = | 10,770 | ÷ | 5,061,293,291 | |
| Sep 9, 2014 | 13.57 | = | 24.86 | ÷ | 1.83 | 1.83 | = | 9,345 | ÷ | 5,099,203,169 | |
| Sep 10, 2013 | 11.57 | = | 24.16 | ÷ | 2.09 | 2.09 | = | 11,196 | ÷ | 5,361,549,877 | |
| Sep 12, 2012 | 10.03 | = | 19.08 | ÷ | 1.90 | 1.90 | = | 10,065 | ÷ | 5,290,061,557 | |
| Sep 14, 2011 | 11.45 | = | 16.33 | ÷ | 1.43 | 1.43 | = | 7,674 | ÷ | 5,382,854,827 | |
| Sep 21, 2010 | 13.19 | = | 21.64 | ÷ | 1.64 | 1.64 | = | 9,164 | ÷ | 5,585,268,740 | |
| Sep 11, 2009 | 18.26 | = | 23.09 | ÷ | 1.26 | 1.26 | = | 7,322 | ÷ | 5,789,367,923 | |
| Sep 15, 2008 | 13.94 | = | 22.38 | ÷ | 1.60 | 1.60 | = | 9,442 | ÷ | 5,883,028,141 | |
| Sep 18, 2007 | 22.64 | = | 32.04 | ÷ | 1.42 | 1.42 | = | 8,621 | ÷ | 6,090,881,108 | |
| Sep 18, 2006 | 19.82 | = | 22.84 | ÷ | 1.15 | 1.15 | = | 6,996 | ÷ | 6,070,131,024 | |
| Sep 19, 2005 | 15.37 | = | 18.17 | ÷ | 1.18 | 1.18 | = | 7,416 | ÷ | 6,274,702,446 |
Based on: 10-K (reporting date: 2026-07-25), 10-K (reporting date: 2025-07-26), 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28), 10-K (reporting date: 2017-07-29), 10-K (reporting date: 2016-07-30), 10-K (reporting date: 2015-07-25), 10-K (reporting date: 2014-07-26), 10-K (reporting date: 2013-07-27), 10-K (reporting date: 2012-07-28), 10-K (reporting date: 2011-07-30), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-25), 10-K (reporting date: 2008-07-26), 10-K (reporting date: 2007-07-28), 10-K (reporting date: 2006-07-29), 10-K (reporting date: 2005-07-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Cisco Systems Inc. Annual Report.
The valuation of Cisco Systems Inc., as measured by the Price to Operating Profit (P/OP) ratio, exhibits significant volatility over the period from 2005 to 2026. The ratio has transitioned through phases of contraction, stabilization, and aggressive expansion, reflecting shifts in market sentiment relative to the company's operational efficiency.
- Operating Profit Performance
- Operating profit per share demonstrates a consistent long-term upward trajectory, increasing from US$ 1.18 in 2005 to US$ 3.90 by 2026. Despite intermittent declines in 2009, 2014, and 2021, the underlying growth in operational profitability remained resilient, providing a baseline for the company's valuation.
- P/OP Ratio Cyclicality
- The P/OP ratio peaked early in 2007 at 22.64 before entering a period of contraction, reaching a cyclical low of 10.03 in 2012. A phase of relative stability was observed between 2013 and 2017, during which the ratio largely hovered between 12.36 and 13.57. A subsequent expansion phase began after 2017, with the ratio climbing to a peak of 28.08 by 2026.
- Valuation Divergence and Market Premium
- A notable divergence between share price and operating profit is evident in the final years of the analyzed period. While operating profit per share grew moderately from US$ 3.05 in 2023 to US$ 3.90 in 2026, the share price escalated sharply from US$ 56.79 to US$ 109.46. This disproportionate increase resulted in the P/OP ratio rising from 15.32 to 28.08, indicating a substantial increase in the market premium assigned to each dollar of operating profit.
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Comparison to Competitors
Cisco Systems Inc., P/OP, long-term trends, comparison to competitors
| Cisco Systems Inc. | Apple Inc. | Arista Networks Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|
| Sep 2, 2026 | 28.08 | — | — | 12.40 | 165.61 | 8.84 |
| Sep 3, 2025 | 22.75 | 30.03 | 46.46 | 11.06 | — | 20.85 |
| Sep 5, 2024 | 16.10 | 27.35 | 44.51 | 15.48 | — | 22.32 |
| Sep 7, 2023 | 15.32 | 24.04 | 36.78 | 5.05 | — | 17.74 |
| Sep 8, 2022 | 13.35 | 20.74 | 28.39 | 8.73 | 20.45 | 10.82 |
| Sep 9, 2021 | 19.26 | 22.56 | 43.25 | 13.19 | 11.95 | 14.57 |
| Sep 3, 2020 | 12.73 | 27.92 | 33.93 | 10.93 | 30.95 | 16.77 |
| Sep 5, 2019 | 14.46 | 17.29 | 21.22 | — | — | 11.69 |
| Sep 6, 2018 | 17.56 | 13.49 | 73.14 | — | 30.84 | 11.88 |
| Sep 7, 2017 | 13.14 | 14.44 | 39.21 | — | 72.37 | 10.46 |
| Sep 8, 2016 | 12.46 | 10.27 | 34.73 | — | 184.11 | 9.74 |
| Sep 8, 2015 | 12.36 | 9.34 | 30.95 | — | — | 8.78 |
| Sep 9, 2014 | 13.57 | 11.74 | 36.40 | — | — | 14.97 |
| Sep 10, 2013 | 11.57 | 9.64 | — | — | — | 20.76 |
| Sep 12, 2012 | 10.03 | 10.14 | — | — | — | 11.95 |
| Sep 14, 2011 | 11.45 | 11.02 | — | — | — | 8.73 |
| Sep 21, 2010 | 13.19 | 15.37 | — | — | — | 9.07 |
| Sep 11, 2009 | 18.26 | 23.22 | — | — | — | 11.98 |
| Sep 15, 2008 | 13.94 | 14.64 | — | — | — | 8.30 |
| Sep 18, 2007 | 22.64 | 32.64 | — | — | — | 8.51 |
| Sep 18, 2006 | 19.82 | 29.72 | — | — | — | — |
| Sep 19, 2005 | 15.37 | 36.61 | — | — | — | — |
Based on: 10-K (reporting date: 2026-07-25), 10-K (reporting date: 2025-07-26), 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28), 10-K (reporting date: 2017-07-29), 10-K (reporting date: 2016-07-30), 10-K (reporting date: 2015-07-25), 10-K (reporting date: 2014-07-26), 10-K (reporting date: 2013-07-27), 10-K (reporting date: 2012-07-28), 10-K (reporting date: 2011-07-30), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-25), 10-K (reporting date: 2008-07-26), 10-K (reporting date: 2007-07-28), 10-K (reporting date: 2006-07-29), 10-K (reporting date: 2005-07-30).