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CSCO

Cisco Systems Inc. — Beer Score

CSCO · US Equity · Technology — Networking
$76.85
Market Price (indicative) · Mar 22, 2026
↓ Price vs intrinsic
Reference price only. Not an official exchange feed.
36
/ 100
Mostly Foam — Est. 64% Speculation
174% premium to fair value
Updated: Mar 2026 · Model: DCF v1.0
Not investment advice · Model-based estimate
Estimated Value (Beer)
$28.00
36%
Est. Speculation Premium (Foam)
$48.85
64%
🍺 36% Est. Fundamental Value 🫧 64% Est. Speculation
Track Score Alerts (Coming Soon) See Model Assumptions ↓

Key Financials

TTM
Revenue$57B
Net Income$11B
Free Cash Flow$15B
P/E Ratio27.6x
EPS (TTM)$2.78
Market Cap$304B
Total Debt$8B
Cash & Equiv.$22B

DCF Valuation

Model Estimate
$28
Est. intrinsic value (DCF model)
vs $76.85 market price
Our model suggests the current price is ~174% above the estimated intrinsic value. The market may be pricing in growth beyond current fundamentals.
WACC8.5%
Growth Rate (5yr)4%
Terminal Growth3%

Model output varies with assumptions. This is not a price target or investment recommendation.

What the Market Is Pricing In

Reverse DCF
4.8%
Implied annual FCF growth rate the
market is pricing into CSCO
At the current price, the market is implying ~4.8% annual growth, versus our 4.0% base case.
Model Growth (5yr)4.0%
Implied Growth4.8%

Reverse DCF finds the growth rate needed to justify the current market price using the same WACC and terminal growth assumptions. Not a prediction.

Sensitivity Analysis

WACC × Growth

How the estimated intrinsic value changes with different WACC and growth assumptions.

Most scenarios suggest the stock trades above estimated intrinsic value.

WACC \ Growth 1.0% 4% 7.0%
7.0%$34$39$44
8.5%$25$28 ← base$32
10.0%$19$22$25

Each cell shows estimated intrinsic value per share. Green = above current price (undervalued scenario). Red = below current price (overvalued scenario). Center cell = base case.

Score History — 90 Days

Free
90d Low
18
90d High
51
Zone Changes
2

Cisco Systems Inc. Stock Valuation Analysis — Beer Score Breakdown

Cisco Systems Inc.'s Beer Score of 36 means that, according to our DCF model, less than half of its current $76.85 stock price is supported by the company's existing fundamentals — revenue, earnings, free cash flow, and assets. The remaining 64% represents an estimated premium the market places on future growth expectations.

Investors buying at this level are betting that future earnings will grow fast enough to close the gap between price and our model estimated intrinsic value.

How Beer Score Is Calculated for CSCO

We pull Cisco Systems Inc.'s latest 10-K and 10-Q filings from SEC EDGAR, run a DCF analysis using a 8.5% WACC and 4% revenue growth rate over 5 years with 3% terminal growth, then compare the resulting model estimate ($28) against the current market price ($76.85). The Beer Score of 36 represents the ratio: $28 ÷ $76.85 = 36%. Model output varies with assumptions. Learn more about our methodology →

Important Information

Beer Score is an educational indicator, not investment advice. It measures the model-estimated gap between a stock's current market price and an estimated intrinsic value derived from public financial data. A low Beer Score does not mean "sell" and a high score does not mean "buy." Past Beer Score patterns do not predict future price movements. Model output varies with assumptions (WACC, growth rate, terminal growth, margins).

Prices shown are indicative reference prices for educational purposes only and are not sourced from an official exchange feed. Data sources include SEC EDGAR filings (10-K and 10-Q), indicative market price data, and proprietary DCF models. Scores update daily after market close. For the full ranking of all stocks, visit the Beer Score Heatmap or read Today's Foam Report.

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About This Valuation

Why does Cisco Systems Inc. have a Beer Score of 36?
Cisco Systems Inc. (CSCO) scores 36 because the stock is currently trading roughly 174% above its estimated intrinsic value of $28. The Beer Score reflects that 36% of the price is backed by estimated fundamental value.
Is CSCO overvalued or undervalued?
Based on our DCF model, Cisco Systems Inc. appears significantly overvalued. The estimated intrinsic value of $28 compared to the current price of $76.85 carries a 64% speculation premium. This is a model-based estimate using 8.5% WACC — not a buy or sell recommendation. The actual fair value depends on assumptions that may change with new earnings data or market conditions.
What assumptions drive the $28 intrinsic value estimate?
The DCF model uses a 8.5% weighted average cost of capital and projects 4% annual revenue growth over five years. Terminal growth is set at 3%. The model is most sensitive to the growth rate and WACC inputs — small changes in either significantly alter the output.

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