Cisco Systems Inc. (NASDAQ:CSCO)

The financial ratios of the company exhibit notable variability across the observed periods, reflecting changes in market valuation relative to earnings, operating profits, sales, and book value.

Price to Earnings (P/E) Ratio

The P/E ratio shows a general upward trend beginning from 16.91 in late 2020, peaking at 27.97 by the third quarter of 2024. There is a noticeable dip around early to mid-2023 where the ratio declined to a low near 14.3 before rising steadily again. This suggests increasing market expectations for future earnings growth or perceived improvements in profitability prospects over the long term.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio mirrors the P/E pattern with an initial increase up to 19.26 in mid-2021, followed by a decline to approximately 12.32 by late 2023. Subsequently, there is a sharp increase peaking above 22 by early 2025. This ratio's movements indicate fluctuations in market valuation relative to operating profit, implying changes in operating efficiency or market sentiment regarding operating profitability.

Price to Sales (P/S) Ratio

The P/S ratio demonstrates a moderate rising trend with some volatility. It starts near 3.68 at the beginning of the observed period, dips to around 3.35 in late 2023, and climbs again reaching near 4.74 by the first quarter of 2025. The movement suggests that the market valuation relative to the company's sales has generally increased, possibly due to growth in revenue or improved market conditions.

Price to Book Value (P/BV) Ratio

The P/BV ratio sees fluctuations similar to the other valuation metrics, starting at 4.64 and rising to nearly 6.0 in mid-2021. It subsequently declines to levels slightly above 4.1 by early 2024 and then resumes an upward trajectory peaking around 5.7 by mid-2025. This pattern implies varying market perceptions about the company’s net asset value and the quality or growth of its book value over time.

Overall, the ratios indicate an initial increase in valuation multiples followed by a decline around 2023, and a resurgence approaching mid-2025. Such pattern might reflect broader market cycles, shifts in investor sentiment, or changes in company fundamentals that influence earnings, profitability, sales, and book value. The post-2023 uptrend points to a recovery or renewed optimism about future performance and valuation.

The analysis of the quarterly financial data reveals several key trends in share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the observed periods.

Share Price

The share price demonstrates a generally upward trajectory with notable fluctuations. Starting at a low point of $41.88, it rises steadily through the initial half of the dataset, peaking at $58.6 in July 2021. Following this, there is a period of moderate decline and volatility, with prices oscillating between approximately $44 and $57 over the subsequent quarters. From late 2023 into 2024, the share price shows renewed strength, reaching its highest values towards mid-2025, ending at $67.67. This final figure represents a significant increase compared to the initial period.

Earnings Per Share (EPS)

EPS values exhibit a more mixed pattern. Initially, EPS grows from $2.48 to a peak near $3.34 in October 2023, indicating an improvement in profitability on a per-share basis over the medium term. However, subsequent quarters demonstrate a stagnation and slight decline, with EPS dropping to around $2.31 by early 2025. This downturn in EPS contrasts with the continued rise in share price, suggesting market expectations or other factors might be influencing valuation independently of recent earnings performance.

Price-to-Earnings (P/E) Ratio

The P/E ratio fluctuates considerably, initially rising from 16.91 to a high of 23.34 during mid-2021, reflecting an increasing valuation multiple. This is followed by a period of decline to around 14.3 in late 2023, indicating a relative undervaluation compared to earnings at that time. Subsequently, the ratio climbs sharply, surpassing 27 in early 2025, which is the highest observed multiple. This trend suggests that investors are willing to pay more per dollar of earnings recently, possibly due to growth expectations or improvements in market sentiment despite the EPS decline during the latter periods.

In summary, the data points to a stock price that is rising overall with intermittent volatility, an EPS that experiences growth but declines in the most recent quarters, and a P/E ratio that widens notably in the last periods. This pattern could imply that market valuation is increasingly driven by factors other than immediate earnings, such as future growth prospects or broader market dynamics. The divergence between EPS and share price/P/E ratio in recent quarters is a notable aspect warranting further investigation to understand underlying causes.

The analysis of the quarterly financial data reveals several notable trends in share price, operating profit per share, and the price-to-operating-profit (P/OP) ratio over the observed period.

Share Price

The share price shows a general upward trend across the examined quarters. Starting from a value of approximately $41.88, the price experienced a rise reaching peaks of $58.60 and $56.30 within the first half of the observed timeline. Following a period of fluctuation with some declines to around $44.00 and $45.37, the price again gradually ascended, hitting new highs of $64.59 and $67.67 towards the end of the data range. Despite intermittent decreases, the overall trajectory points to an improving market valuation.

Operating Profit Per Share

The operating profit per share exhibited a gradual increase during the initial periods, moving from $2.98 to a peak around $3.88, signifying a strengthening operational performance. However, after reaching this high, a decline became apparent, with the metric decreasing to lower levels near $2.58 in later quarters. A slight recovery is observed towards the end of the timeline, yet the values remain below the earlier peak, suggesting some challenges in maintaining sustained profit growth per share.

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

The P/OP ratio experienced fluctuations that mirror the changes in both share price and operating profit per share. Early data points show an increasing trend in the ratio, rising from around 14.03 to a peak near 19.26, indicating that the share price was growing faster than the operating profit per share at that time. Subsequently, the ratio declined to lows approximately 12.32, aligning with the periods when share prices dipped or profits improved. Towards the latest quarters, the ratio surged again to values above 22, which may reflect elevated market expectations or a disproportionate increase in share price relative to operating profit.

In summary, the company's share prices have generally increased over the period, with notable volatility. Operating profit per share initially improved but later experienced a decline, which may denote emerging operational pressures. The P/OP ratio’s variability underscores shifting market valuations and investor sentiment, particularly towards the end of the timeline where the ratio reached elevated levels despite waning profit growth. These patterns together suggest a dynamic financial position with potential risks stemming from the divergence between market prices and underlying profit metrics.

The analysis of the quarterly financial data reveals several noteworthy trends related to share price, sales per share, and the price-to-sales (P/S) ratio over the observed periods.

Share Price

The share price demonstrated an overall upward trend from October 2020 to July 2025, increasing from $41.88 to $67.67. There was some volatility observed, particularly around early 2022, where the share price declined from $56.30 in January 2022 to $44.00 in April 2022. Following this dip, the price generally recovered and showed consistent growth, reaching peaks above $60 in the periods leading up to mid-2025.

Sales per Share

Sales per share exhibited a gradual but steady increase throughout the timeline. Starting at $11.38 in October 2020, there was a consistent rise up to a peak of $14.33 by July 2025. Some minor fluctuations are observable, such as a slight dip around early 2024, but the prevailing trajectory indicates sustained growth in sales per share.

Price-to-Sales (P/S) Ratio

The P/S ratio showed variability across the periods, reflecting fluctuations in relative valuation. Initially, the ratio increased from 3.68 in October 2020 to a peak of 4.96 in July 2021, indicating growing market expectations relative to sales. However, from mid-2021 to early 2022, the P/S ratio decreased substantially, bottoming out around 3.35 in October 2023. After this period, the ratio climbed once more, reaching approximately 4.72 by July 2025. This pattern suggests oscillations in investor sentiment and valuation multiples alongside the company’s sales performance and share price movements.

Overall, the financial metrics suggest that while sales growth has been relatively steady, market valuation in terms of the P/S ratio and share price has experienced more pronounced volatility, influenced by varying market conditions and investor perceptions over the reported quarters.

The analysis of the quarterly financial data reveals several noteworthy trends concerning share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the observed periods.

Share Price

The share price exhibited an overall upward trajectory from October 2020 to July 2025, rising from approximately $41.88 to $67.67. Notable fluctuations are evident within this general uptrend. For instance, the price peaked near $58.60 in July 2021, followed by a decline to about $44 in April 2022. Subsequently, the price recovered and experienced another increase, reaching above $67 by mid-2025. This pattern suggests periods of volatility interspersed with growth phases, possibly influenced by market conditions or company-specific factors.

Book Value per Share (BVPS)

BVPS demonstrated a steady and gradual increase throughout the timeframe. Starting from $9.03 in October 2020, it rose consistently to reach $11.85 by July 2025. The increments are relatively modest period-to-period but indicate an ongoing accumulation of shareholder equity on a per-share basis. This consistent growth in BVPS reflects strengthening fundamentals or retained earnings growth over time.

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

The P/BV ratio fluctuated considerably, reflecting the combined movements of share price and BVPS. It was highest near mid-2021, reaching almost 6 times book value, likely due to the peak in share price at that time. Afterward, the ratio decreased notably when the share price dropped in early 2022. From mid-2022 onwards, the P/BV ratio varied between approximately 4.3 and 5.7, showing oscillations corresponding to share price movements relative to the steadier increases in BVPS. The recent upward shift in the ratio towards mid-2025 points to a valuation premium over book value, as share prices outpace the growth in book value.

In summary, the data reflect a company experiencing increasing intrinsic value, as measured by BVPS, accompanied by share price volatility that causes significant variation in valuation multiples. The rising share price trend and the interplay with steadily increasing book value suggest growing investor confidence, though market dynamics induce fluctuations in price-to-book valuation over the periods analyzed.