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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 30.8 (0.72% today). The market cap for Cisco Systems, Inc. is 153878.56, and is in the sector Technology, and Networking & Communication Devices industry. The target price for Cisco Systems, Inc. is 30.92. Currently Cisco Systems, Inc. is trading with a P/E of 15.22, and a forward P/E of 12.59. Average volume for Cisco Systems, Inc. is 23798.94 and so far today it is 8809514.

Performance in the last year for Cisco Systems, Inc. has been 14.92%. For EPS growth, Cisco Systems, Inc. has seen a growth of 17.40%, and is looking to grow in the next year to 4.16%. More long term stats show that EPS growth has been 5.60% over the last five years and could be 10.47% for the next five years. Cisco Systems, Inc. has seen sales growth quarter over quarter at -1.10%, with EPS growth quarter over quarter at -2.00%. The 20-day simple moving average is 8.15%, with the 200-day simple moving average coming to 14.53%.

Since the IPO date for Cisco Systems, Inc. on the 3/26/1990, Cisco Systems, Inc. has seen performance year to date to be 15.55%. With Cisco Systems, Inc. trading at 30.8, the dividend yield is 3.40%, and the EPS is 2.01.

So could Cisco Systems, Inc., be undervalued? Well as said before P/E is 15.22. The PEG is 1.45, P/S is 3.11 and the P/B is at 2.47. The P/cash is 2.42, with P/free cash flow at 18.81.

Cisco Systems, Inc. ability to deal with debt shows that the current ratio is 3.3, and the quick ratio is 3.2. This is with long term debt/equity at 0.39, and total debt/equity at 0.46.

In terms of margins, Cisco Systems, Inc. has a gross margin of 62.10%, an operating margin of 24.70% and a profit margin of 20.70%.Payout ratio for Cisco Systems, Inc. is 44.00%. Return on assets come to 9.00% with return on investment coming to 10.10%.

Insider ownership for Cisco Systems, Inc., is at 0.10% and institutional ownership comes to 77.20%. Outstanding shares are at 5032. While shares float is 5025.16. The float short is currently 0.95%, and short ratio is 2.01.

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.

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Stephen Butters

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