Stock fact sheet · data as of
Cisco Systems, Inc. (CSCO): fair value, margin of safety and Wheel Score
Technology · Communication Equipment · United States · Blend
Is CSCO undervalued?
At 109.85 (close of 16 Oct 2026), CSCO trades 143% over the GLS average fair value of 45.16, with 0 of 9 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
The 9 models disagree widely: GLS Growth gives 5.59 while 10 Cap gives 83.54. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files CSCO under Blend.
Nine valuation models for CSCO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 55.57 | -49% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 30.99 | -72% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 80.22 | -27% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 26.76 | -76% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 5.59 | -95% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 83.54 | -24% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 61.88 | -44% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 24.57 | -78% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 37.29 | -66% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -10.32 | -109% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 129.77 | +18% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health CSCO scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.2 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 16.6%, ROE 26.4%, ROA 10.2% - with debt at 0.59 times equity and a free-cash-flow yield of 3.1%.
The dividend yield is 1.52% at a payout ratio of 49%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Networking 55%, Service 24%, Security 13% (quarter Q4 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales; the last recorded insider buy was on 16 Sep 2026; the last recorded Congressional buy was on 25 Sep 2026.
| Piotroski F-score | 8 / 9 | ROIC | 16.6% |
|---|---|---|---|
| GLS Moat | 6.2 / 10 | ROE | 26.4% |
| Debt / equity | 0.59 | ROA | 10.2% |
| Free-cash-flow yield | 3.1% | Payout ratio | 49% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 67: Good
CSCO scores 67 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 0/25), Piotroski health (18/20), the GLS moat (9/15), the option premium on offer (20/20) and how easily the stock trades (20/20). Value (0/25) is the part holding the score back.
Implied volatility is 42% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 723,175 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 20.8M shares a day on a market cap of $433.1B, with a beta of 0.98; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -143% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 9 / 15 | moat 6.2/10 | |
| Premium | 20 / 20 | implied volatility 42% | |
| Stability | 20 / 20 | 20.8M shares/day, $433.1B cap, beta 0.98 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 11 Nov 2026 (after the close), 26 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Communication Equipment
The 12 companies below are the closest to Cisco Systems, Inc. by market cap within the Communication Equipment industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| LITE Lumentum Holdings Inc. | 869.54 | 100.02 | -769% | 45Weak | $78.8B |
| MSI Motorola Solutions, Inc. | 456.27 | 329.24 | -39% | 62Fair | $75.5B |
| NOK Nokia Oyj | 9.57 | 3.58 | -168% | 61Fair | $51.7B |
| CIEN Ciena Corporation | 356.52 | 138.15 | -158% | 63Fair | $50.6B |
| UI Ubiquiti Inc. | 605.51 | 354.32 | -71% | 33No options | $36.7B |
| ERIC Telefonaktiebolaget LM Ericsson (publ) | 10.71 | 41.17 | +74% | 86Prime | $34.8B |
| ZBRA Zebra Technologies Corporation | 376.88 | 227.01 | -66% | 60Fair | $17.8B |
| VIAV Viavi Solutions Inc. | 38.55 | 7.64 | -405% | 45Weak | $9.5B |
| VSAT Viasat, Inc. | 61.73 | 65.02 | +5% | 45Weak | $8.5B |
| AAOI Applied Optoelectronics, Inc. | 83.73 | - | - | 43Weak | $7.1B |
| BDC Belden Inc. | 104.22 | 100.11 | -4% | 72Good | $4.1B |
| ONDS Ondas Holdings Inc. | 6.35 | 9.04 | +30% | 45Weak | $3.7B |
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Start free See the Sunday ScanQuestions about CSCO
Is CSCO undervalued right now?
No: at 109.85 the stock trades 143% above the GLS average fair value of 45.16 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of CSCO and what does it mean?
CSCO scores 67 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CSCO?
45.16 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Cisco Systems, Inc. report earnings next?
The next earnings report is due on 11 Nov 2026 (after the close), 26 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CSCO have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 723,175 open interest across all expiries and implied volatility of 42% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.