Cisco Systems Inc. (NASDAQ:CSCO)

The analysis of the provided financial ratios over the examined periods reveals several notable trends and fluctuations.

Price to Earnings (P/E) Ratio

The P/E ratio data is absent in early periods but becomes available starting from October 2019. From that point, it exhibits fluctuations with initial values around 17.5, peaking near 23.3 in late 2021, followed by a decline to approximately 15.2 in late 2022. Subsequently, it gradually rises again, reaching a high above 27 by early 2025 before slightly decreasing to about 25.6. This pattern suggests periods of varying market valuation relative to earnings, with significant peaks around late 2021 and early 2025.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio data begins from October 2019. It starts near 14.5, increases steadily to highs around 19.3 in late 2021, then sharply declines to around 12.9 in late 2022. Afterward, it experiences some recovery, followed by a pronounced surge, peaking above 25 in early 2025, before a moderate decrease occurs. These movements indicate volatile investor sentiment regarding operating profits, with notable valuation expansions at the end of 2021 and early 2025.

Price to Sales (P/S) Ratio

The P/S ratio follows a generally increasing trend from October 2019, starting at approximately 3.96 and reaching a peak near 4.96 in late 2021. After this peak, a decline ensues, bottoming around 3.53 in late 2022, followed by a partial recovery with values stabilizing around the 4.3 to 4.7 range into early 2025. These patterns indicate changing market perceptions of sales valuations, with peaks coinciding with high P/E and P/OP ratios.

Price to Book Value (P/BV) Ratio

The P/BV ratio shows a more extended dataset starting from late 2018, characterized by an initial upward trend from 4.56 to a peak of 6.57 by early 2019. Following this, it declines steadily and fluctuates between approximately 4.3 and 5.9 over subsequent periods. Notably, a decline to about 4.3 occurs around early 2024, with a rebound to about 5.6 by early 2025. This ratio exhibits less volatility compared to other ratios but reflects cyclical valuation changes relative to book value.

In summary, all ratios demonstrate cyclical behavior with marked peaks around late 2021 and early 2025, interspersed with declines in late 2022. The highest volatility is observed in P/E and P/OP ratios, suggesting changing investor expectations about profitability and earnings. The P/S ratio generally mirrors these trends but with less pronounced fluctuations. The P/BV ratio remains relatively more stable but still reflects valuation shifts consistent with market sentiment over the examined duration.

The share price of the company has experienced fluctuations across the observed periods. Initially priced at $44.49 in late October 2018, it increased steadily, reaching a peak of $58.60 by mid-2021. Subsequently, it underwent a decline and some volatility, dropping to $44 in April 2022 before rising again to a high of $64.59 in January 2025. The price appeared to oscillate within the range of mid-40s to mid-60s US dollars, suggesting variable market sentiment and potential external influences on valuation.

Earnings per share (EPS) data, available from April 2019 onward, shows relative stability with modest growth in the earlier part of the series. Starting at $2.74 in April 2019, EPS hovered around the 2.4 to 2.9 range for several quarters. A noticeable increase occurred around October 2022, peaking at $3.34 in January 2024. However, following this peak, EPS declined to $2.31 by April 2025 and showed a slight recovery to $2.47 in the last reported quarter. This pattern indicates a period of earnings strength followed by some erosion, possibly reflecting changes in operational performance or market conditions.

The Price-to-Earnings (P/E) ratio demonstrates variability in investor valuation relative to earnings. Early values ranged between approximately 15 and 23 between 2019 and 2022, with peaks near 23.34 in July 2021 and 24.17 in January 2025. Notably, the P/E ratio increased significantly in the most recent periods, reaching close to 28 in April 2025 before slightly pulling back. The rising P/E ratio near the end of the series, despite the declining EPS, indicates investors may have elevated expectations for future growth or other factors influencing share price beyond current earnings.

Overall, the data reflects a company experiencing periods of growth in both share price and earnings, interspersed with phases of market adjustment and earnings contraction. The increasing P/E ratio towards the latest periods might imply heightened investor optimism or perceived value, contrasting with the waning EPS figures. This divergence warrants attention for assessing sustainability of earnings and market valuation going forward.

The data reflects trends in Cisco Systems Inc.'s share price, operating profit per share, and price-to-operating profit (P/OP) ratios over a period from late 2018 to mid-2025, providing insights into the company's market valuation relative to its profitability.

Share Price

The share price exhibited fluctuations throughout the observed period, starting at $44.49 in October 2018 and generally trending upwards with intermittent declines. Notable decreases occurred around mid-2020, coinciding with a drop to approximately $40.95 in July 2020. Following this, the share price recovered and experienced a period of growth, reaching peaks above $58 in mid-2021. After some volatility through 2022 and early 2023, the share price rose significantly, peaking at $64.59 in January 2025 before a slight decline to $63.42 by April 2025. Overall, the share price shows moderate appreciation with periods of volatility likely tied to market conditions or company-specific events.

Operating Profit Per Share

Operating profit per share data is available starting from July 2019, where it began at $3.35. This metric remained relatively stable with slight fluctuations around the $3.0 to $3.4 range up through early 2024, peaking at $3.88 in January 2024 before declining thereafter. The trend shows a gradual increase until early 2024, suggesting improved operational efficiency or higher profit generation per share during this time. However, after January 2024, the operating profit per share shows a notable decline down to $2.58 by April and July 2025, indicating possible operational challenges or increased costs affecting profit margins in the later periods.

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

The P/OP ratio reflects how the market values the company's operating profit per share. Initial ratios from mid-2019 start around 14.46 and fluctuate, generally increasing to a peak in the higher teens during mid-2021 (around 19.26). This rise indicates the market was valuing the operating profit more highly relative to its earnings at that time. Following this peak, the ratio decreased notably towards early 2023, dropping to around 12.32, which suggests a relative undervaluation or improved earnings performance for the share price during that phase. However, from early 2024 onwards, the P/OP ratio increased sharply, reaching above 22 by January 2025 and peaking at 25 in April 2025 before slightly retreating. This sharp increase corresponds with the decline in operating profit per share during the same period, indicating the market price remained relatively high even as profitability fell, possibly signaling investor optimism or speculative factors impacting valuation.

In summary, the share price shows moderate growth with periods of volatility, while operating profit per share remained stable with growth until early 2024 followed by a decline. The P/OP ratio trends suggest periods of market optimism and relative valuation shifts, particularly a significant increase in valuation multiples during 2024 and early 2025, coinciding with a decline in earnings per share. These trends imply evolving market sentiments and operational performance fluctuations within the company over the examined time frame.

The share price of the company exhibited notable volatility over the observed period. Initially, the share price rose from $44.49 in late October 2018 to a peak of $58.60 in late July 2021. This upward trend was followed by fluctuations, with prices dipping to a low of around $44 in late April 2022, then gradually recovering to reach a new high of $64.59 by late January 2025 before slightly decreasing to $63.42 in late April 2025.

Sales per share displayed a generally steady upward trajectory from the point data became available. Starting around $12.23 in late October 2019, sales per share slowly increased over the subsequent quarters, reaching $14.05 by late April 2025. This represents a sustained growth in sales on a per-share basis, indicating positive sales performance relative to the share count during the period.

The price-to-sales (P/S) ratio demonstrated fluctuations throughout the period analyzed. Early values noted a ratio close to 3.96 in October 2019, which then slightly declined and varied between approximately 3.35 and 4.96 in the following years. The highest P/S ratio was recorded in late October 2021 at 4.96, coinciding with elevated share prices and relatively moderate sales per share. Subsequently, the ratio generally oscillated within the 3.3 to 4.3 range, exhibiting a slight upward movement toward the end of the period, reaching approximately 4.52 in late April 2025.

Share Price Trends

Demonstrated initial growth through mid-2021, followed by fluctuations and a recovery to a peak in early 2025.

Sales per Share Trends

Maintained a consistent increase over the entire observed period, indicating gradual improvement in sales efficiency on a per-share basis.

Price-to-Sales Ratio Trends

Experienced variability with peaks and troughs, reflecting changes in market valuation relative to sales, but generally remained within a moderate range with a slight upward tendency toward the end.

Overall, the data indicates that while the market valuation of the company experienced periods of volatility, sales performance steadily improved. The fluctuations in the P/S ratio suggest changing investor sentiments or valuation adjustments relative to sales growth, but without extreme deviations. The steady increase in sales per share alongside recoveries in share price toward the latter part of the period points to positive operational performance contributing to shareholder value.

The share price of the company exhibited notable fluctuations over the observed periods. Initially, there was an upward trend from approximately $44.49 to a peak near $58.60 by mid-2021, followed by some volatility with a decline to the mid-$40 range by early 2023. Subsequently, the share price rebounded, reaching a high of about $64.59 in early 2025 before experiencing a slight decrease towards $63.42 at the last observation.

The book value per share (BVPS) showed a gradual but consistent increase throughout the quarters. Starting from $9.75, BVPS dipped slightly in the early periods but then steadily rose to $11.60 by the end of the timeframe. This suggests progressive accumulation of equity or retained earnings, reflecting an improvement in the underlying net asset value per share over time.

The price-to-book value ratio (P/BV) followed a pattern roughly consistent with the share price movements, exhibiting peaks and troughs that corresponded to changes in market valuation relative to book value. Initially, the P/BV ratio increased significantly from 4.56 to nearly 6.57 by early 2019, indicating that the market valued the shares at a substantial premium over book value. This ratio then declined, reaching levels around 4.13 to 4.31 in 2023 and early 2024, suggesting a relative decrease in market valuation compared to book value. However, by the last data points, the P/BV ratio rose again above 5.0, aligning with the increase in share price, indicating renewed investor confidence and a higher premium over book value.

Overall, the data reflects a company experiencing moderate growth in intrinsic value per share while market perceptions, as seen in the share price and P/BV ratio, have been more volatile. The trend suggests that although the company's equity base grew steadily, investor sentiment and external factors influenced market valuation, resulting in fluctuations in share pricing and valuation multiples over the analyzed periods.