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 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: 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.
- Share Price Trend
- The share price exhibited significant volatility over the observed periods. Initially, it increased from $18.17 in 2005 to a peak of $32.04 in 2007 before experiencing a substantial decline in 2008 to $22.38. After fluctuating moderately between 2009 and 2012, the share price showed a steady upward trend from 2013, reaching a notable high of $58.60 in 2021. This peak was followed by a decline to $45.37 in 2022, a recovery to $56.79 in 2023, a drop again in 2024 to $49.13, and finally another increase to $67.67 in 2025. Overall, despite fluctuations, the share price more than tripled from 2005 to 2025.
- Operating Profit Per Share (OPPS) Trend
- Operating profit per share demonstrated a general upward progression across the years. Starting at $1.18 in 2005, it showed steady growth with minor fluctuations, reaching levels above $3.00 from 2017 onwards. The highest observed value was $3.71 in 2023, signifying more than a threefold increase compared to 2005. Post-2023, a slight decline was noted with the OPPS decreasing to $3.05 in 2024 and $2.97 in 2025, but it remained significantly higher than earlier years.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio displayed considerable variability, indicative of changing market valuation relative to operating earnings. Initially high at 15.37 in 2005, it rose to a peak of 22.64 in 2007, corresponding to a period when share price increased disproportionately relative to operating profit per share. The ratio then dropped significantly to 10.03 in 2012, suggesting the share price was undervalued relative to operating profit at that time. From 2013 to 2018, the ratio hovered between 12 and 17, implying a moderate valuation. In 2021, the ratio experienced a notable increase to 19.26, suggesting a higher valuation of earnings. The highest ratio recorded was 22.75 in 2025, despite a decline in operating profit per share, reflecting a significant premium placed on the share price relative to current earnings.
- Summary of Insights
- The data reveals sustained growth in operating earnings per share over two decades, indicating improving operational efficiency or profitability. Share price growth generally aligns with rising operating profits but exhibits greater volatility, influenced possibly by market sentiment, broader economic factors, or company-specific events. The variability in P/OP ratios over the years suggests fluctuating market expectations regarding future profitability and risk. Notably, the recent elevated P/OP ratio in 2025, despite lower operating profit per share, may indicate investor optimism or speculation driving valuations higher beyond fundamental earnings trends.
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. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|
| Sep 3, 2025 | 22.75 | — | — | 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 | 10.82 |
| Sep 9, 2021 | 19.26 | 22.56 | 43.25 | 13.19 | 14.57 |
| Sep 3, 2020 | 12.73 | 27.92 | 33.93 | 10.93 | 16.77 |
| Sep 5, 2019 | 14.46 | 17.29 | 21.22 | — | 11.69 |
| Sep 6, 2018 | 17.56 | 13.49 | 73.14 | — | 11.88 |
| Sep 7, 2017 | 13.14 | 14.44 | 39.21 | — | 10.46 |
| Sep 8, 2016 | 12.46 | 10.27 | 34.73 | — | 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: 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).