Cisco Systems operates as a critical digital infrastructure integrator, providing enterprise networking hardware (switching, routing), security, and observability tools. The company is strategically repositioning its portfolio towards AI-optimized ethernet fabrics (Silicon One) and high-margin subscription software services, notably following the acquisition of Splunk.
CSCO is executing a complex pivot, leveraging its installed base (C1 cycle risk) to become a critical AI-ethernet fabric provider (C2 driver). The companyβs focus on high-margin software is evident in the TTM Gross Margin of 64.85% and the positive 2.23% YoY expansion in gross margin (M2 GM Trend), indicating stabilizing pricing power. The highly strategic R&D intensity (16.13% of revenue) supports the A-AI thesis. Crucially, management conviction is backed by substantial insider buying, with $139.7M in net purchases over the last six months (insider_confidence: true), signaling a belief in the long-term transition.
| Market Cap | 307.4B |
| PE Ratio (TTM) | 30.04 |
| Revenue (TTM) | 57.7B |
| Profit Margin | 0.1790 |
| 52 Week High | 80.82 |
| 52 Week Low | 52.11 |
| Price | 79.28 |
What do you have to believe?
Growth vs Discount Rate
| 12% | 9% | 7% | |
|---|---|---|---|
| High | -- | -- | -- |
| Base | -- | -- | -- |
| Low | -- | -- | -- |
β Undervalued β Overvalued
| Year | Revenue | Margin | FCF | PV of FCF |
|---|---|---|---|---|
| Terminal Value (PV) | -- | |||
| Enterprise Value | -- | |||
| Equity Value (EV + Cash - Debt) | -- | |||