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CSCO:NASDAQCisco Systems, Inc. Analysis

Data as of 2026-03-27 - not real-time

$82.16

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Cisco’s share price is comfortably above its short‑term and long‑term moving averages, and the MACD line sits above its signal, underscoring a bullish technical backdrop. The RSI is in the upper‑mid range, indicating continued upward pressure without an extreme overbought signal, while rising volume adds conviction to the move. Support sits well below the current price, offering a buffer, whereas resistance nearby may cap short‑term upside. Fundamentally, the forward PE is markedly lower than the current PE and below the industry average, suggesting a valuation tilt toward value despite growth credentials. Strong free cash flow, a moderate payout ratio and a dividend yield above two percent reinforce the income appeal. Recent analyst downgrade flags margin pressure, yet robust cash generation, solid return metrics and a resilient dividend underpin confidence in the longer horizon.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bullish technical indicators but price approaching resistance
  • Margin concerns highlighted by recent downgrade
  • Increasing volume supporting the current trend

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Forward earnings multiple compression offering valuation upside
  • Strong cash flow generation relative to debt
  • Attractive dividend yield with sustainable payout

Long Term

> 3 years
Neutral
Model confidence: 6/10

Key Factors

  • Consistent profitability and high return on equity
  • Dividend income complementing growth prospects
  • Valuation gap between market price and intrinsic DCF estimate

Key Metrics & Analysis

Financial Health

Revenue Growth9.70%
Profit Margin18.76%
P/E Ratio29.6
ROE23.75%
ROA6.99%
Debt/Equity66.51
P/B Ratio6.8
Op. Cash Flow$13.3B
Free Cash Flow$10.1B
Industry P/E32.6

Technical Analysis

TrendBullish
RSI60.6
Support$75.20
Resistance$83.11
MA 20$79.05
MA 50$78.83
MA 200$72.92
MACDBullish
VolumeIncreasing
Fear & Greed Index72.13

Valuation

Fair Value$48.04
Target Price$88.81
Upside/Downside8.09%
GradeOvervalued
TypeBlend
Dividend Yield2.04%

Risk Assessment

Beta0.91
Volatility45.20%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.