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Is this Large Market Cap Stock target price reasonable for Cisco Systems, Inc. (NASDAQ:CSCO)?

The company in question is, Cisco Systems, Inc. (NASDAQ:CSCO) currently with a stock price of 31.16 (-0.89% today). The market cap for Cisco Systems, Inc. is 161312.04, and is in the sector Technology, and Networking & Communication Devices industry. The target price for Cisco Systems, Inc. is 32.85. Currently Cisco Systems, Inc. is trading with a P/E of 14.89, and a forward P/E of 12.26. Average volume for Cisco Systems, Inc. is 22928.83 and so far today it is 2365173.

Performance in the last year for Cisco Systems, Inc. has been 25.00%. For EPS growth, Cisco Systems, Inc. has seen a growth of 20.90%, and is looking to grow in the next year to 5.64%. More long term stats show that EPS growth has been 12.60% over the last five years and could be 9.34% for the next five years. Cisco Systems, Inc. has seen sales growth quarter over quarter at -1.60%, with EPS growth quarter over quarter at 22.60%. The 20-day simple moving average is 1.80%, with the 200-day simple moving average coming to 13.07%.

Since the IPO date for Cisco Systems, Inc. on the 3/26/1990, Cisco Systems, Inc. has seen performance year to date to be 18.80%. With Cisco Systems, Inc. trading at 31.16, the dividend yield is 3.31%, and the EPS is 2.11.

So could Cisco Systems, Inc., be undervalued? Well as said before P/E is 14.89. The PEG is 1.59, P/S is 3.28 and the P/B is at 2.49. The P/cash is 2.45, with P/free cash flow at 21.02.

Cisco Systems, Inc. ability to deal with debt shows that the current ratio is 3.2, and the quick ratio is 3.1. This is with long term debt/equity at 0.39, and total debt/equity at 0.45.

In terms of margins, Cisco Systems, Inc. has a gross margin of 62.90%, an operating margin of 25.70% and a profit margin of 21.80%.Payout ratio for Cisco Systems, Inc. is 44.20%. Return on assets come to 9.20% with return on investment coming to 11.40%.

Insider ownership for Cisco Systems, Inc., is at 0.10% and institutional ownership comes to 77.20%. Outstanding shares are at 5130.79. While shares float is 5021.12. The float short is currently 1.15%, and short ratio is 2.51.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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