Cisco Systems Inc. (NASDAQ:CSCO)

The analysis of the provided financial ratios over the six-year period reveals several notable trends and fluctuations in the valuation metrics.

Price to Earnings (P/E) Ratio

The P/E ratio exhibits considerable volatility, beginning at 15.46 in 2020 and peaking at 26.28 in 2025. After reaching a high of 23.34 in 2021, the ratio declined to 15.78 in 2022, before gradually increasing again to 26.28 by 2025. This overall upward trend in the latter years may indicate increasing investor confidence or expectations regarding future earnings growth, though the fluctuations suggest some market uncertainty or variable earnings performance during the mid-period.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio shows a general rising trend from 12.73 in 2020 to 22.75 in 2025, with a notable dip in 2022 to 13.35. The increase suggests a heightened market valuation relative to operating profit over time. The dip in 2022 indicates a temporary decrease in market valuation or an improvement in operating profit that was not matched by stock price growth.

Price to Sales (P/S) Ratio

The P/S ratio fluctuates moderately within the range of 3.52 to 4.96. It peaks at 4.96 in 2021 and then shows a downturn in 2022 to 3.62 before trending upwards again toward 4.72 in 2025. This pattern suggests variations in sales growth relative to market price, with investor optimism ebbing and flowing during this period. The ratio remains relatively stable compared to P/E and P/OP ratios, indicating steadier sales performance.

Price to Book Value (P/BV) Ratio

The P/BV ratio ranges from a low of 4.31 in 2024 to a high of 5.99 in 2021. After peaking in 2021, the ratio declines in 2022 and 2024 before rebounding to 5.71 in 2025. This non-linear trend suggests changes in market perception of the company's net asset value, which may reflect alterations in book value or shifts in investor expectations regarding asset quality or growth potential.

Overall, the data indicate increasing valuation multiples in the more recent years, particularly in price-based ratios relative to earnings and operating profit. The fluctuations seen in 2022 across multiple ratios may point to a period of uncertainty or transition. Stabilization and growth in valuation multiples in subsequent years suggest improving market sentiment towards the company's financial outlook.

Share Price

The share price exhibited variability over the analyzed period. It started at $40.95 in mid-2020, increased significantly to a peak of $58.60 in mid-2021, before decreasing to $45.37 in mid-2022. Subsequently, the price rose again to $56.79 in mid-2023, experienced a decline to $49.13 in mid-2024, and then increased sharply to $67.67 by mid-2025. This pattern reflects a general upward trend with notable fluctuations throughout the years.

Earnings Per Share (EPS)

EPS values showed a mostly stable trend with minor fluctuations. Starting at $2.65 in mid-2020, EPS decreased slightly to $2.51 in mid-2021, then increased to a peak of $3.11 in mid-2023. Following this, EPS declined again to $2.59 in mid-2024 and remained almost unchanged at $2.58 in mid-2025. Overall, the EPS movement suggests modest growth with a peak followed by a decline and stabilization.

Price-to-Earnings (P/E) Ratio

The P/E ratio demonstrated considerable variation across the periods. Beginning at 15.46 in mid-2020, the ratio rose sharply to 23.34 in mid-2021, then dropped to 15.78 in mid-2022. It increased once more to 18.26 in mid-2023 and further to 19.00 in mid-2024, culminating in a significant peak of 26.28 in mid-2025. This indicates fluctuating market valuation relative to earnings, with a notable increase in valuation by 2025 despite relatively stable EPS.

Share Price Trend

The share price exhibited fluctuations over the presented periods. Starting at $40.95 in July 2020, the price increased notably to $58.60 by July 2021, followed by a decline to $45.37 in July 2022. Subsequently, it recovered to $56.79 in July 2023, experienced a moderate decrease to $49.13 in July 2024, and then saw a significant rise to $67.67 by July 2025. Overall, the share price demonstrates a pattern of volatility with an upward tendency towards the latest period.

Operating Profit Per Share (OPPS)

The operating profit per share showed minor oscillations with a general downward trend toward the later years. The value began at $3.22 in July 2020, decreased slightly to $3.04 in July 2021, then improved to $3.40 in July 2022, and further peaked at $3.71 in July 2023. However, it declined thereafter to $3.05 in July 2024 and further to $2.97 by July 2025. This suggests a peak performance around mid-period followed by a decline over the most recent two years.

Price to Operating Profit Ratio (P/OP)

The price to operating profit ratio displayed significant variation, reflecting changes in both share price and operating profit per share. Initially at 12.73 in July 2020, the ratio increased steeply to 19.26 in July 2021, then decreased to 13.35 in July 2022. It rose again to 15.32 in July 2023 and continued increasing to 16.10 in July 2024, culminating at 22.75 in July 2025. This trend indicates increasing market valuation relative to operating profit in recent years, suggesting investors may be pricing shares with higher growth expectations or facing reduced profit levels.

Share Price Trend

The share price exhibited fluctuations over the analyzed period. It increased significantly from $40.95 in July 2020 to a peak of $58.60 in July 2021. Subsequently, it declined to $45.37 by July 2022 before rising again to $56.79 in July 2023. Following another dip to $49.13 in July 2024, the share price reached its highest point of $67.67 in July 2025. Overall, the share price showed a volatile yet upward trajectory with notable recoveries after periods of decline.

Sales per Share Movement

Sales per share demonstrated a generally positive trend throughout the period. Starting at $11.65 in July 2020, sales per share increased modestly to $11.81 in July 2021 and continued to grow steadily to $12.55 in July 2022. The upward momentum accelerated, reaching $14.06 in July 2023. There was a slight decrease to $13.48 in July 2024, followed by a rebound to $14.33 in July 2025. The overall pattern indicates consistent revenue growth per share with minor short-term fluctuations.

Price-to-Sales (P/S) Ratio Trends

The price-to-sales ratio reflected variability in both market valuation and sales performance. The ratio started at 3.52 in July 2020 and increased significantly to 4.96 by July 2021, suggesting a rise in market valuation relative to sales. It then declined sharply to 3.62 in July 2022, indicating a relative discounting of the share price or growth in sales. The ratio rose again to 4.04 in July 2023, dropped to 3.64 in July 2024, and subsequently increased to 4.72 in July 2025. These fluctuations suggest changing investor sentiment and market conditions impacting the valuation relative to sales over time.

Key Insights

The data reveals a pattern of resilience and growth in sales per share, supporting a generally positive business performance. Share prices, while volatile, have trended upwards overall, aligning with improvements in sales but also influenced by broader market factors. The varying P/S ratio indicates shifts in market valuation dynamics, with periods of investor optimism and caution. The interplay of these metrics suggests a company experiencing cyclical valuation changes amid steady sales growth.

The analysis of the financial data reveals distinct trends in the share price, book value per share (BVPS), and the price-to-book value ratio (P/BV) over the examined periods.

Share Price

The share price experienced notable fluctuations throughout the period. Beginning at $40.95 in July 2020, it increased sharply to $58.60 by July 2021. This was followed by a decline to $45.37 in July 2022. Subsequently, the share price rose again to $56.79 in July 2023, before experiencing a decrease to $49.13 in July 2024. By July 2025, the share price had reached a peak of $67.67, marking the highest value in the dataset.

Book Value Per Share (BVPS)

BVPS showed a consistent upward trend over the period analyzed. Starting at $8.96 in July 2020, BVPS marginally increased to $9.79 in July 2021 and slightly dipped to $9.68 in July 2022. Thereafter, the BVPS steadily rose, reaching $10.94 in July 2023, $11.39 in July 2024, and eventually $11.85 in July 2025. This gradual increase indicates a steady growth in the company's net asset value on a per-share basis.

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

The P/BV ratio exhibited variability that closely reflected changes in the share price relative to BVPS. The ratio started at 4.57 in July 2020 and peaked at 5.99 in July 2021, coinciding with a high share price relative to BVPS. It then declined to 4.69 in July 2022, before climbing again to 5.19 in July 2023. A decrease to 4.31 occurred in July 2024, followed by an increase to 5.71 in July 2025. These fluctuations suggest alternating periods of market optimism and caution in valuation relative to the company’s book value.

Overall, the data indicates that while the company’s intrinsic value as measured by BVPS has steadily increased, the market valuation represented by the share price and P/BV ratio has experienced notable volatility. The share price movements and corresponding P/BV ratios point to shifts in investor sentiment and market conditions over the five-year period.