Cisco Systems Inc. (CSCO)

Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Current Valuation Ratios

Cisco Systems Inc., current price multiples

	Cisco Systems Inc.	Apple Inc.	Applied Materials Inc.	Broadcom Ltd.	HP Inc.	Intel Corp.	NVIDIA Corp.	Qualcomm Inc.	Texas Instruments Inc.	Technology Hardware & Equipment	Technology
Selected Financial Data
Current share price (P)	$
No. shares of common stock outstanding
Growth rate (g)	%

Earnings per share (EPS)	$
Next year expected EPS	$
Operating profit per share	$
Sales per share	$
Book value per share (BVPS)	$
Ratios (Price Multiples)
Price to earnings (P/E)
Price to next year expected earnings
Price-earnings-growth (PEG)
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

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Historical Valuation Ratios (Summary)

Cisco Systems Inc., historical price multiples

		Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013	Jul 28, 2012
	Price to earnings (P/E)
	Price to operating profit (P/OP)
	Price to sales (P/S)
	Price to book value (P/BV)

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Cisco Systems Inc.'s P/E ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Cisco Systems Inc.'s P/OP ratio increased from 2015 to 2016 and from 2016 to 2017.
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Cisco Systems Inc.'s P/S ratio increased from 2015 to 2016 and from 2016 to 2017.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Cisco Systems Inc.'s P/BV ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017.

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Price to Earnings (P/E)

Cisco Systems Inc., historical P/E calculation, comparison to benchmarks

		Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013	Jul 28, 2012
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Net income (in millions)
	Earnings per share (EPS)³
	Share price^1, 2
	Ratio
	P/E ratio⁴
	Benchmarks
	P/E Ratio, Competitors
	Apple Inc.
	Applied Materials Inc.
	Broadcom Ltd.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	P/E Ratio, Sector
	Technology Hardware & Equipment
	P/E Ratio, Industry
	Technology

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Cisco Systems Inc.'s Annual Report.

2017 Calculations

³ EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =

⁴ P/E ratio = Share price ÷ EPS
= ÷ =

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Cisco Systems Inc.'s P/E ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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Price to Operating Profit (P/OP)

Cisco Systems Inc., historical P/OP calculation, comparison to benchmarks

		Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013	Jul 28, 2012
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Operating income (in millions)
	Operating profit per share³
	Share price^1, 2
	Ratio
	P/OP ratio⁴
	Benchmarks
	P/OP Ratio, Competitors
	Apple Inc.
	Applied Materials Inc.
	Broadcom Ltd.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	P/OP Ratio, Sector
	Technology Hardware & Equipment
	P/OP Ratio, Industry
	Technology

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Cisco Systems Inc.'s Annual Report.

2017 Calculations

³ Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =

⁴ P/OP ratio = Share price ÷ Operating profit per share
= ÷ =

Ratio	Description	The company
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Cisco Systems Inc.'s P/OP ratio increased from 2015 to 2016 and from 2016 to 2017.

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Price to Sales (P/S)

Cisco Systems Inc., historical P/S calculation, comparison to benchmarks

		Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013	Jul 28, 2012
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Revenue (in millions)
	Sales per share³
	Share price^1, 2
	Ratio
	P/S ratio⁴
	Benchmarks
	P/S Ratio, Competitors
	Apple Inc.
	Applied Materials Inc.
	Broadcom Ltd.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	P/S Ratio, Sector
	Technology Hardware & Equipment
	P/S Ratio, Industry
	Technology

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Cisco Systems Inc.'s Annual Report.

2017 Calculations

³ Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =

⁴ P/S ratio = Share price ÷ Sales per share
= ÷ =

Ratio	Description	The company
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Cisco Systems Inc.'s P/S ratio increased from 2015 to 2016 and from 2016 to 2017.

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Price to Book Value (P/BV)

Cisco Systems Inc., historical P/BV calculation, comparison to benchmarks

		Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013	Jul 28, 2012
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Total Cisco shareholders' equity (in millions)
	Book value per share (BVPS)³
	Share price^1, 2
	Ratio
	P/BV ratio⁴
	Benchmarks
	P/BV Ratio, Competitors
	Apple Inc.
	Applied Materials Inc.
	Broadcom Ltd.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	P/BV Ratio, Sector
	Technology Hardware & Equipment
	P/BV Ratio, Industry
	Technology

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Cisco Systems Inc.'s Annual Report.

2017 Calculations

³ BVPS = Total Cisco shareholders' equity ÷ No. shares of common stock outstanding
= ÷ =

⁴ P/BV ratio = Share price ÷ BVPS
= ÷ =

Ratio	Description	The company
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Cisco Systems Inc.'s P/BV ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017.

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	Cisco Systems Inc.	Other companies (not purchased previously)
Long-term Trends
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Analysis
Financial Reporting Quality

	All companies
Long-term Trends
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Analysis
Financial Reporting Quality