What is CSCO's intrinsic value?

TickerWorth's valuation lenses put Cisco Systems, Inc. (CSCO) between $22.39 and $116.81 per share, versus a market price of $107.39. They disagree too widely for us to state a single fair value, so we publish the range.

Is CSCO overvalued or undervalued?

At $107.39 the price sits inside a range too wide to call either way. We don't call CSCO overvalued or undervalued from a range this wide. This is an educational estimate, not advice.

What discount rate is used for CSCO?

A WACC of 9.9% and a terminal growth rate of 2.5%.

Is Cisco Systems stock undervalued?

TickerWorth's fair-value range for Cisco Systems, Inc. (CSCO) is $22.39 – $116.81 against a market price of $107.39. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.

Cisco Systems (CSCO) DCF valuation and fair value

Our fair-value range for Cisco Systems, Inc. (CSCO) is $22.39 – $116.81, built on a 9.9% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into Cisco Systems stock?

Today's price implies revenue growth of 24.8% a year for 5 years; our model assumes 6.8% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $107.39. A model estimate, not investment advice.

Cisco Systems (CSCO) insider trading

The most recent insider filing (SEC Form 4) for Cisco Systems, Inc. (CSCO): Tuszik Oliver, EVP, Global Sales, shares withheld (tax) on 2026-10-10. The latest filings are listed on this page. A disclosure, not a signal to trade.

CSCO · Intrinsic value

Is Cisco Systems, Inc. (CSCO) overvalued or undervalued?

Name: Cisco Systems, Inc. (CSCO) DCF intrinsic value
Creator: TickerWorth

As of Oct 19, 2026, TickerWorth's valuation lenses put Cisco Systems, Inc. (CSCO) at $22.39 – $116.81, too broad a range to say where the delayed market price of $107.39 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full CSCO analysis

What is CSCO worth?

Fair-value range: $22.39 – $116.81
Market price: $107.39
Gap to fair value: —
Verdict: Too wide to call

Price as of 19 Oct 2026, 13:15 UTC · Prices are delayed.Our valuation lenses disagree too widely on this company for us to publish a single number, so we publish the range instead. We do not call it over- or undervalued from a spread this wide.

Fair-value range against the delayed market price: Too wide to call.

Reverse DCF: Today's price implies revenue growth of 24.8% a year for 5 years; our model assumes 6.8% a year on average over the same horizon.

What is CSCO's TickerWorth Score?

C46/100

Middle of the pack — real strengths and real weaknesses

Compared with Technology companies in US

Its strongest point: a profitable, high-quality business. Its weakest: trades above our estimate of what it's worth.

Value · 44 of 100
Cheaper than 44% of Technology companies in US
Price vs worth · 17 of 100
Quality · 72 of 100
More profitable than 72% of Technology companies in US
Financial health · 35 of 100
Financially stronger than 35% of Technology companies in US
Growth · 46 of 100
Growing faster than 46% of Technology companies in US
Momentum · 63 of 100
Outperformed 63% of Technology companies in US over the past year

Confidence: Medium confidence · Scored 19 Oct 2026, 13:15 UTC

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Where the numbers come from

Hand-researched model

What the modeller flagged

YEAR-1 FCF IS ~20% ABOVE CISCO'S LAST REPORTED FCF ($15.3B modeled vs $12,767M reported) — at the 20% line, so explained: the reported figure absorbed the final $2.3B U.S. transition-tax payment (a one-off; FY2026 cash taxes were $4,821M vs $3,900M in FY2025). Ex that, FY2026 FCF was ~$15.1B, and the model's Year 1 adds 15% revenue growth against it while still charging intangible amortization and a 17% tax rate.
TERMINAL VALUE IS ~72% OF ENTERPRISE VALUE — just under the 75% danger line. The five explicit years carry ~28% of the answer.
THE GAP TO THE MARKET IS LARGE AND IS MOSTLY ABOUT THE DISCOUNT RATE AND DURATION. The model lands about half of today's price. On this cash-flow path the price implies a WACC of ~6.2% (beta ~0.21) or ~25% revenue growth every year for five years; no single judgement call in this file (amortization, tax, working capital, terminal growth) closes more than ~$8 of it.
FINANCING RECEIVABLES NOT MODELED. Cisco's customer loan book grew $1,805M (+28%) in FY2026 'reflecting higher customer demand for financing'. That cash use sits outside the model's working capital. If it keeps growing ~$1.5-2B a year it would cut FCF by ~2-3% of revenue and lower the value; if some of it is vendor financing of AI customers it also carries credit risk.
MARGIN MIX RISK. Q4 FY26 non-GAAP product gross margin fell 270bp YoY on 'higher hardware mix and memory costs'. The flat 27.0-27.3% GAAP path assumes opex discipline offsets that; a hyperscaler-heavy mix that keeps compressing gross margin would make Years 2-5 too high.
SBC of $3,830M (6.0% of revenue) is expensed inside GAAP EBIT and not added back; dilution is carried by the diluted share count.
Year 1 margin is DERIVED from GAAP EPS guidance (with assumed share count and interest), not a reported line. Two derivation routes land at 26.5% and 26.7%.

Why CSCO gets a range, not one number

At a recent price of $107.39, Cisco Systems, Inc. (CSCO) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $22.39 and $116.81 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts Cisco Systems, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 9.9%, with a long-run terminal growth rate of 2.5%. About 72% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 24.8% annual revenue growth for CSCO. Our base case instead compounds to about 6.8% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, CSCO's modeled DCF value ranges from about $40.97 to $81.46 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Cisco Systems, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of CSCO's intrinsic value. Figures update as new filings and prices come in.

Every input behind CSCO's DCF

Input	Value	Source
Base-year revenueCisco FY2026 10-K (accession 0000858877-26-000132, filed 2026-09-02): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2026 (52 weeks to 2026-07-25). +11.8% vs FY2025 $56,654M. Product $48,295M (+16%), services $15,030M (flat). By product group: Networking $34,668M (+22%), Security $8,232M (+2%), Collaboration $4,300M (+4%), Observability $1,095M (+4%). THE GROWTH IS HARDWARE: services and subscription did not grow — total ARR $32.1B was +3% and subscription is 48% of revenue (Q4 FY26 prepared remarks). CROSS-CHECK, LATEST QUARTER: Q4 FY26 revenue $17,252M, +18% YoY, product +24%, the fastest of the year — so the base year ends on its strongest quarter and Year 1 starts from an exit run-rate of ~$69B annualized before any growth. Five-year context: $49.8B (FY21), $51.6B, $57.0B, $53.8B (FY24, a -5.6% digestion year after the supply-chain backlog flushed), $56.7B, $63.3B.	$63,325,000,000	Cisco FY2026 10-K (accession 0000858877-26-000132, filed 2026-09-02): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2026 (52 weeks to 2026-07-25). +11.8% vs FY2025 $56,654M. Product $48,295M (+16%), services $15,030M (flat). By product group: Networking $34,668M (+22%), Security $8,232M (+2%), Collaboration $4,300M (+4%), Observability $1,095M (+4%). THE GROWTH IS HARDWARE: services and subscription did not grow — total ARR $32.1B was +3% and subscription is 48% of revenue (Q4 FY26 prepared remarks). CROSS-CHECK, LATEST QUARTER: Q4 FY26 revenue $17,252M, +18% YoY, product +24%, the fastest of the year — so the base year ends on its strongest quarter and Year 1 starts from an exit run-rate of ~$69B annualized before any growth. Five-year context: $49.8B (FY21), $51.6B, $57.0B, $53.8B (FY24, a -5.6% digestion year after the supply-chain backlog flushed), $56.7B, $63.3B.
Base EBIT marginCisco Q4 FY2026 earnings release, 8-K Ex-99.1 (accession 0000858877-26-000106, filed 2026-08-12); ties to the FY2026 10-K: GAAP operating income $15,368M / revenue $63,325M = 24.27% (us-gaap:OperatingIncomeLoss, same figure in the 10-K). This is GAAP and therefore AFTER: SBC $3,770M (5.95% of revenue), amortization of acquisition-related intangibles $1,863M (2.94% — $947M in cost of sales + $916M opex, mostly Splunk), acquisition costs $375M and restructuring $693M. Non-GAAP operating margin was 34.8%; the ~10.5pt gap is those four items. It EXCLUDES the $1,245M of other income, of which $1,409M was gains on non-marketable equity investments — not operating, not repeatable. CROSS-CHECK: Q4 FY26 GAAP margin 24.7% vs 21.0% a year earlier; FY2025 was 20.76%, FY2024 22.6%, FY2023 26.4% (before Splunk amortization started).	24.3%	Cisco Q4 FY2026 earnings release, 8-K Ex-99.1 (accession 0000858877-26-000106, filed 2026-08-12); ties to the FY2026 10-K: GAAP operating income $15,368M / revenue $63,325M = 24.27% (us-gaap:OperatingIncomeLoss, same figure in the 10-K). This is GAAP and therefore AFTER: SBC $3,770M (5.95% of revenue), amortization of acquisition-related intangibles $1,863M (2.94% — $947M in cost of sales + $916M opex, mostly Splunk), acquisition costs $375M and restructuring $693M. Non-GAAP operating margin was 34.8%; the ~10.5pt gap is those four items. It EXCLUDES the $1,245M of other income, of which $1,409M was gains on non-marketable equity investments — not operating, not repeatable. CROSS-CHECK: Q4 FY26 GAAP margin 24.7% vs 21.0% a year earlier; FY2025 was 20.76%, FY2024 22.6%, FY2023 26.4% (before Splunk amortization started).
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	15% → 7% → 5% → 4% → 4%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker.
BetaYahoo Finance 5Y-monthly beta via yfinance: Published 5Y-monthly beta 0.992, used as-is (rounded to 0.99). NOT normalized. There is an argument for normalizing DOWN — Cisco's beta ran ~0.8-0.9 for most of the last decade as a mature dividend payer — but the last two years made it an AI-infrastructure stock (+57% over 12 months, a 52-week range of $66.81-$130.37), and that higher co-movement with the market is the risk an owner now actually carries. Each 0.1 of beta is worth roughly $4/share here (0.80 gives ~$62.5); the reverse DCF shows the price needs a beta near 0.21, so no plausible beta closes the gap.	0.99	Yahoo Finance 5Y-monthly beta via yfinance: Published 5Y-monthly beta 0.992, used as-is (rounded to 0.99). NOT normalized. There is an argument for normalizing DOWN — Cisco's beta ran ~0.8-0.9 for most of the last decade as a mature dividend payer — but the last two years made it an AI-infrastructure stock (+57% over 12 months, a 52-week range of $66.81-$130.37), and that higher co-movement with the market is the risk an owner now actually carries. Each 0.1 of beta is worth roughly $4/share here (0.80 gives ~$62.5); the reverse DCF shows the price needs a beta near 0.21, so no plausible beta closes the gap.
Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. FLAG: this is generous relative to Cisco's own history — revenue grew only ~0.8% a year from FY2016 ($49,247M) to FY2022 ($51,557M) before the AI cycle. Kept because networking traffic now grows with AI inference and the house default is about comparability, not a forecast; 2.0% would take ~$2.8/share off. Must stay well below WACC (9.87%); 3.0% would add ~$3.2/share.	2.5%	ESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. FLAG: this is generous relative to Cisco's own history — revenue grew only ~0.8% a year from FY2016 ($49,247M) to FY2022 ($51,557M) before the AI cycle. Kept because networking traffic now grows with AI inference and the house default is about comparability, not a forecast; 2.0% would take ~$2.8/share off. Must stay well below WACC (9.87%); 3.0% would add ~$3.2/share.
Diluted sharesCisco Q4 FY2026 earnings release, 8-K Ex-99.1 (shares used in per-share calculation); ties to the 10-K: Q4 FY2026 weighted-average diluted shares 3,984M (FY2026 full year 3,987M; Q4 FY2025 3,992M). The count is FALLING slowly: Cisco bought back $6.1B of stock in FY2026 (~76M shares) against issuance and RSU vesting, net ~-0.2% a year. The diluted rather than the 3,942.6M outstanding figure is used because that is how this model carries SBC dilution.	3,984M	Cisco Q4 FY2026 earnings release, 8-K Ex-99.1 (shares used in per-share calculation); ties to the 10-K: Q4 FY2026 weighted-average diluted shares 3,984M (FY2026 full year 3,987M; Q4 FY2025 3,992M). The count is FALLING slowly: Cisco bought back $6.1B of stock in FY2026 (~76M shares) against issuance and RSU vesting, net ~-0.2% a year. The diluted rather than the 3,942.6M outstanding figure is used because that is how this model carries SBC dilution.
Market priceDelayed quote · as of 2026-10-19 13:15 UTC	$107.39	Delayed quote · as of 2026-10-19 13:15 UTC

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What does Cisco Systems, Inc. do?

What does it do?

Cisco Systems, Inc. designs, develops, and sells technologies to power, help, secure, and draw insights from the internet in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. It operates in the Communication Equipment industry (Technology sector), headquartered in United States. The company employs roughly 82,400 people.

How does it make money?

The business turns $63.3B in annual revenue into profit. Out of every $100 of sales, about $28 is left as operating profit (operating margin of 27.7%), after a 65% gross margin on the products/services it sells. After all costs, taxes and interest, 21.0% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks mixed: carries modest debt (0.6× equity), may struggle to cover its short-term bills (0.9× current ratio), and is currently profitable.

Who at CSCO filed insider trades?

Recent insider filings for Cisco Systems, Inc.
Date	Insider	Relationship	What happened	Value	Filing
10 Oct 2026	Tuszik Oliver	EVP, Global Sales	Shares withheld (tax)	$267,512.98	Form 4 for Tuszik Oliver (opens sec.gov in a new tab)
9 Oct 2026	Rishi Girish D	Director	Grant / award	—	Form 4 for Rishi Girish D (opens sec.gov in a new tab)
16 Sept 2026	Patel Jeetendra I	President and CPO	Grant / award	—	Form 4 for Patel Jeetendra I (opens sec.gov in a new tab)
16 Sept 2026	Patterson Mark	EVP and CFO	Grant / award	—	Form 4 for Patterson Mark (opens sec.gov in a new tab)
16 Sept 2026	Robbins Charles	Director, Chair and CEO	Grant / award	—	Form 4 for Robbins Charles (opens sec.gov in a new tab)
16 Sept 2026	Stahlkopf Deborah L	EVP and Chief Legal Officer	Grant / award	—	Form 4 for Stahlkopf Deborah L (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is CSCO's intrinsic value?
TickerWorth's valuation lenses put Cisco Systems, Inc. (CSCO) between $22.39 and $116.81 per share, versus a market price of $107.39. They disagree too widely for us to state a single fair value, so we publish the range.
Is CSCO overvalued or undervalued?
At $107.39 the price sits inside a range too wide to call either way. We don't call CSCO overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for CSCO?
A WACC of 9.9% and a terminal growth rate of 2.5%.
Is Cisco Systems stock undervalued?
TickerWorth's fair-value range for Cisco Systems, Inc. (CSCO) is $22.39 – $116.81 against a market price of $107.39. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Cisco Systems (CSCO) DCF valuation and fair value
Our fair-value range for Cisco Systems, Inc. (CSCO) is $22.39 – $116.81, built on a 9.9% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Cisco Systems stock?
Today's price implies revenue growth of 24.8% a year for 5 years; our model assumes 6.8% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $107.39. A model estimate, not investment advice.
Cisco Systems (CSCO) insider trading
The most recent insider filing (SEC Form 4) for Cisco Systems, Inc. (CSCO): Tuszik Oliver, EVP, Global Sales, shares withheld (tax) on 2026-10-10. The latest filings are listed on this page. A disclosure, not a signal to trade.