Cisco Systems Inc. (NASDAQ:CSCO)

Price to Earnings (P/E) Ratio

The P/E ratio exhibits a general upward trend over the analyzed periods, starting from 16.91 and reaching as high as 29.6 by the final quarter. Initially, the ratio rose steadily from 16.91 to around 23.34 within the first year. Following this peak, a decline occurred, with values dropping to around 14.3 to 15.61 during mid-periods. However, in the later quarters, the ratio increased significantly, surpassing previous highs and indicating growing investor expectations for earnings growth or potentially higher valuation multiples.

Price to Operating Profit (P/OP) Ratio

This ratio mirrors the general pattern observed in the P/E ratio but with slightly less volatility. Beginning at 14.03, it climbs to a peak of around 19.26 in the earlier phases, then declines into lower ranges around 12.32 to 13.69 during mid-periods. The latter periods see a pronounced rise, reaching values above 23.95, which suggests an increased valuation relative to operating profit, potentially reflecting optimism about operational efficiency or profitability improvements.

Price to Sales (P/S) Ratio

The price to sales ratio shows a more gradual and steady increase compared to the previous ratios. Starting at 3.68, it generally ascends over time with minor fluctuations, ultimately reaching 5.3 by the end of the timeline. This upward movement indicates that the market is willing to pay progressively higher multiples of sales, which could be due to revenue growth, improved sales quality, or enhanced investor sentiment towards the company's sales prospects.

Price to Book Value (P/BV) Ratio

The P/BV ratio follows a somewhat similar trend of growth with fluctuations. Beginning at 4.64, it rises to just under 6.0 in the early periods, then experiences a dip into the low 4.0s across several quarters. The ratio climbs again in the latter periods, peaking at 6.52 at the end of the timeline. This pattern suggests shifting perceptions of the company’s net asset value, with recent valuations reflecting higher confidence in the book value or expected returns on equity.

The share price exhibited a notable upward trend over the analyzed periods, starting at $41.88 and reaching $77.37 by the final date. There were fluctuations, including a decline between early 2022 and mid-2023, where the price dropped from around $56 to below $47. However, this was followed by a sustained recovery and acceleration in price increases from mid-2023 onwards.

Earnings per share (EPS) showed more variability throughout the timeline. Initially, EPS rose moderately from $2.48 to a peak of $3.34 during late 2023 to early 2024. Subsequently, EPS declined significantly to around $2.31 by early 2025 but rebounded slightly towards the final period, closing at $2.61. This pattern indicates an overall cycle of growth, contraction, and partial recovery in profitability on a per-share basis.

The price-to-earnings (P/E) ratio experienced considerable fluctuation, reflecting the dynamic relationship between share price and earnings. Early in the period, the ratio increased from approximately 17 to a peak near 23 before dropping sharply to a range between 14 and 15 by mid-2023. After this low, the P/E ratio climbed steadily, reaching its highest level of 29.6 in the last quarter. This ascent suggests that market valuation of the stock increased relative to earnings, possibly indicating heightened investor optimism or expectations of future growth, despite the dip in EPS during some quarters.

Overall Trend Summary

Share price growth outpaced EPS growth, particularly in the latter periods, leading to an elevated P/E ratio.

Earnings Performance

EPS peaked in late 2023 and then declined, showing volatility and pressure on earnings before a modest recovery.

Valuation Insights

The rising P/E ratio towards the end suggests increasing market confidence, or higher valuation multiples, which could reflect anticipated future earnings improvements or other growth expectations.

Volatility Periods

The year 2022 to mid-2023 marked a phase of lower share prices and reduced P/E ratios, coinciding with fluctuating earnings performance.

Share Price Trends

The share price demonstrated an overall upward trajectory over the analyzed period, starting at $41.88 and increasing to $77.37 by the last quarter. There were several fluctuations: an initial rise to $58.60 was followed by a decline to approximately $44.00, then a gradual recovery with moderate volatility before achieving the highest value at the end of the period. The late period showed stronger momentum in share price growth, particularly from January 2024 onward.

Operating Profit per Share (OPPS) Dynamics

Operating profit per share exhibited relatively stable performance with minor fluctuations. Initially, OPPS rose moderately from $2.98 to a peak of $3.88 around October 2023, indicating a period of improving profitability. Subsequently, a decline occurred through early 2024, reaching a trough near $2.58 by early 2025. Towards the last reported quarter, there was a slight rebound to $3.23, suggesting a recovery in operational profitability.

Price-to-Operating Profit (P/OP) Ratio Behavior

The P/OP ratio experienced considerable variation, reflecting shifts in market valuation relative to earnings. Early data indicated an upward trend from about 14.03 to 19.26, pointing to growing investor optimism or higher valuation multiples. This was followed by a notable decrease to near 12.32, aligning with the rising OPPS and a dip in share price. In the final periods, the ratio increased sharply to near 23.95, driven by share price appreciating despite lower operating profit levels, suggesting elevated market expectations or perceived growth potential despite recent profit compression.

Interrelationship Among Metrics

The share price and OPPS did not always move in tandem, as indicated by the fluctuating P/OP ratio. Periods of rising OPPS corresponded with moderate share price increases and lower valuation multiples, whereas recent periods showed increasing share prices outpacing operating profit gains, leading to expanding P/OP ratios. This divergence might reflect broader market dynamics, sentiment shifts, or anticipation of future growth beyond current operating profit levels.

Summary Insights

The data reveals a company with generally improving share price performance over time, accompanied by periods of stable to moderately fluctuating operating profitability. The valuation multiples suggest that investor confidence and market expectations have varied significantly, with recent quarters showing high valuation levels despite a temporary decline in operating profit per share. This may imply external factors influencing investor behavior or strategic market positioning affecting the financial outlook.

The share price shows notable fluctuations over the observed periods. It begins at $41.88 and experiences an upward trend with some volatility, reaching a peak at $58.6 in July 2021. Subsequently, there is a decline until April 2023, hitting approximately $48.41. Thereafter, the share price resumes growth, accelerating markedly towards the end of the timeline, culminating at $77.37 in October 2025. This suggests periods of investor optimism interrupted by phases of retrenchment, followed by renewed confidence and stronger market performance towards the latter dates.

Sales per share demonstrate a steady and incremental increase throughout the entire duration. Starting from $11.38, sales per share rise consistently, with minor variations around 2023-2024, before continuing the upward trajectory to reach $14.60 by October 2025. This indicates a gradually strengthening revenue base per share, reflecting either growth in sales or effective share management over time.

The price-to-sales (P/S) ratio presents more pronounced volatility compared to sales per share. Initially, it increases from 3.68 to a high of 4.96 by July 2021, signifying a rising market valuation relative to sales. Following this peak, the ratio declines substantially to around 3.35 in October 2023, indicating a relative undervaluation or sales growth outpacing price gains. From this point, the P/S ratio begins a recovery phase, increasing to 5.3 by October 2025, which suggests an enhanced market valuation relative to sales, possibly reflecting improved market sentiment or expectations of future growth.

Overall, the data reveals a company experiencing an underlying sales growth trend, with market valuation and share price responding in a somewhat cyclical manner. The latter periods show strengthening investor confidence as evidenced by rising share prices and elevated P/S ratios, suggesting positive outlooks despite previous fluctuations.

Share Price Trend

The share price exhibited notable fluctuations over the observed periods. Initially, the price increased from 41.88 US$ to a peak of 58.6 US$ by July 31, 2021. Following this peak, a downward correction occurred, with the price declining to as low as around 44 US$ by April 30, 2022. A moderate recovery followed, with the share price oscillating around the mid-to-high 40s until early 2024. From early 2024 onwards, a clear upward momentum is observed, culminating in a share price of 77.37 US$ by October 25, 2025. This indicates strong positive investor sentiment in the latter periods.

Book Value Per Share (BVPS) Trend

The book value per share displayed a steady and gradual increase throughout the examined timeframe. It rose from 9.03 US$ in October 2020 to approximately 11.86 US$ by October 2025. This consistent upward trend in BVPS suggests continuous accumulation of net assets or retained earnings relative to shares outstanding, reflecting improving underlying equity value.

Price-to-Book Value Ratio (P/BV) Analysis

The P/BV ratio demonstrates cyclical behavior in line with changes in share price and book value per share. Early in the period, the ratio climbed from 4.64 to a high of 5.99 by July 2021, mirroring the rising share price. A subsequent decline to around 4.3 occurred in early 2024, aligning with periods of share price stagnation or decrease. After this trough, the ratio again increased, reaching a peak of 6.52 by October 2025. Such fluctuations indicate varying market valuation perceptions relative to the company's book value, with the most recent elevated P/BV suggesting a higher market premium on the company's equity.

Overall Insights

The data reflects a company experiencing growth in intrinsic book value alongside volatile market valuation as seen in share price and P/BV ratio movements. The share price volatility appears partially decoupled from the steady increase in book value, indicating that market factors or investor sentiment have significant influence on the stock price beyond the fundamental equity growth. The recent strengthening in both price and P/BV ratio implies heightened investor confidence and possibly favorable market conditions or company prospects leading into late 2024 and 2025.