Cisco Systems Inc. (NASDAQ:CSCO)

Price to earnings (P/E) ratio

The P/E ratio exhibited variability over the analyzed period. It began at 17.69 in 2019, declined to 15.46 in 2020, then surged to a peak of 23.34 in 2021. Following this peak, the ratio decreased sharply to 15.78 in 2022. In the latest years, it rose again to 18.26 in 2023 and slightly increased further to 19 in 2024. This reflects fluctuating market valuation relative to earnings, indicating changing investor sentiment or earnings performance across these years.

Price to operating profit (P/OP) ratio

This ratio followed a pattern somewhat analogous to the P/E ratio. Starting at 14.46 in 2019, the ratio dropped to 12.73 in 2020, then increased significantly to 19.26 in 2021. It subsequently decreased to 13.35 in 2022. Recent data show a moderate increase to 15.32 in 2023 and 16.1 in 2024. The fluctuations suggest shifts in market expectations relative to operating profitability, with 2021 standing out as a year with elevated valuation multiples.

Price to sales (P/S) ratio

The P/S ratio displayed more modest changes, starting at 3.96 in 2019 and declining gradually to 3.52 in 2020. It rose again to a peak of 4.96 in 2021 before decreasing to 3.62 in 2022. In 2023 it slightly increased to 4.04 but then declined again to 3.64 in 2024. The ratio shows some cyclicality but remains within a relatively narrow range, suggesting steady valuation relative to sales over the period.

Price to book value (P/BV) ratio

The P/BV ratio exhibited an overall downward trend across the years. Starting at 6.12 in 2019, it declined to 4.57 in 2020, increased somewhat to 5.99 in 2021, then dropped to 4.69 in 2022. It increased slightly to 5.19 in 2023 but decreased again to 4.31 in 2024. This pattern indicates fluctuating investor valuation relative to the company's book value, with the higher peaks in 2019 and 2021 followed by subsequent declines.

Share Price

The share price exhibited fluctuations over the six-year period. It started at $48.42 in mid-2019, declined to a low of $40.95 in mid-2020, then increased to a peak of $58.60 by mid-2021. Subsequently, it dropped again to $45.37 in mid-2022 before rising to $56.79 by mid-2023. The latest data point shows a decrease to $49.13 by mid-2024, indicating some volatility in the market valuation.

Earnings Per Share (EPS)

EPS values showed relative stability with minor fluctuations. Beginning at $2.74 in mid-2019, EPS slightly decreased through mid-2021, reaching $2.51. It recovered upward to a high of $3.11 in mid-2023, representing a positive earnings growth, before falling again to $2.59 in mid-2024. Overall, EPS demonstrates moderate variability without a consistent upward or downward trend.

Price-to-Earnings (P/E) Ratio

The P/E ratio demonstrated significant variation throughout the observed period. It ranged from a low point of 15.46 in mid-2020 to a peak of 23.34 in mid-2021. After this peak, the ratio declined to 15.78 in mid-2022, then rose again to approximately 19 by mid-2024. This pattern suggests fluctuating investor sentiment regarding growth expectations and valuation attractiveness relative to earnings.

Summary of Trends

The financial indicators reflect a period marked by volatility and changing market sentiment. Share price volatility aligns partially with changes in EPS and P/E ratios, indicating that fluctuations in earnings and investor valuation perceptions impacted the stock price. Despite earnings showing some growth peaks, particularly in 2023, the market's reaction remains inconsistent, demonstrated by the oscillating P/E ratio and share price. The divergence between EPS growth and the variable price suggests investors may be factoring in broader market conditions and future expectations beyond current earnings.

Share Price Trend

The share price exhibits notable volatility over the observed periods, beginning at $48.42 in July 2019. It declined to $40.95 in July 2020, followed by a rebound to $58.60 in July 2021. Subsequently, the price decreased again to $45.37 in July 2022, then rose to $56.79 in July 2023, before falling to $49.13 in July 2024. This pattern indicates fluctuating market sentiment or external factors influencing the stock's valuation within the six-year span.

Operating Profit Per Share (OPPS) Development

The operating profit per share shows relative stability with a mild downward drift and occasional recoveries. Starting at $3.35 in July 2019, it slightly decreased to $3.22 in July 2020 and further to $3.04 in July 2021. It then increased to $3.40 in July 2022 and peaked at $3.71 in July 2023, before declining again to $3.05 in July 2024. This fluctuation suggests some variability in operational efficiency or profitability per share over the timeline, with a peak in mid-2023.

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

The P/OP ratio manifests considerable inconsistency, reflecting the interplay between share price and operating profit per share. It started at 14.46 in July 2019, decreased to 12.73 in July 2020, then surged to 19.26 in July 2021, indicating a period when the share price increased faster than operating profit per share. Afterwards, it dropped to 13.35 in July 2022, rose moderately to 15.32 in July 2023, and increased further to 16.10 in July 2024. These fluctuations may highlight changing investor expectations or market conditions impacting the valuation relative to operating profit.

Overall Observations

The financial metrics indicate a cycle of volatility and recovery within the six-year period. Operating profits per share have remained within a relatively narrow range, whereas share price movements have been more pronounced, resulting in variable valuation multiples. This pattern might suggest that external elements such as market dynamics, industry developments, or broader economic factors significantly influence market valuation beyond underlying operational performance.

Share Price

The share price demonstrated fluctuations over the observed periods. Starting at 48.42 USD in July 2019, it decreased below 41 USD by July 2020. Subsequently, it recovered to reach a peak of 58.6 USD in July 2021, before declining again to approximately 45.37 USD in July 2022. The price increased to 56.79 USD in July 2023 but then dropped to 49.13 USD by July 2024. Overall, the share price exhibited volatility with intermittent recoveries and declines.

Sales Per Share

Sales per share showed a generally upward trend over the time frame. Beginning at 12.23 USD in July 2019, the metric dipped slightly to 11.65 USD in July 2020 but then gradually increased, reaching a high of 14.06 USD in July 2023. There was a minor decrease to 13.48 USD in July 2024. The overall growth in sales per share indicates an improving revenue-generating capability on a per-share basis despite minor fluctuations.

Price-to-Sales (P/S) Ratio

The P/S ratio displayed variability without a clear long-term trend. Starting at 3.96 in July 2019, it declined to 3.52 by July 2020, then rose significantly to 4.96 in July 2021. Afterwards, it decreased to 3.62 in July 2022, increased slightly to 4.04 in July 2023, and settled at 3.64 in July 2024. These changes suggest fluctuating market valuation relative to sales, potentially reflecting shifting investor perceptions or market conditions.

Over the observed period, the share price exhibited notable volatility. Beginning at $48.42 in 2019, it declined to a low of $40.95 in 2020, followed by a recovery and peak at $58.60 in 2021. Subsequently, the price decreased again to $45.37 in 2022, then rose to $56.79 in 2023 before settling at $49.13 in 2024. This pattern suggests cyclical fluctuations without a clear directional trend.

Book value per share (BVPS) demonstrated a steady upward trend throughout the period. Starting from $7.91 in 2019, BVPS increased consistently each year, reaching $11.39 by 2024. This reflects a continuous accumulation of net assets per share, possibly indicating retained earnings growth or asset appreciation.

The price-to-book value (P/BV) ratio, which indicates market valuation relative to book value, showed variability corresponding to the share price movements. It decreased sharply from 6.12 in 2019 to 4.57 in 2020, then increased to 5.99 in 2021. Afterward, it declined again to 4.69 in 2022, increased to 5.19 in 2023, and finally dropped to 4.31 in 2024. The general trend reflects fluctuating market sentiment with an overall slight reduction in how much investors are willing to pay relative to the company's book value.