Cisco is Overvalued at 4.95X PS: Should You Still Buy the Stock?

Cisco Systems CSCO shares are trading at a premium, as suggested by the Value Score of D. In terms of the forward 12-month price/sales, CSCO is trading at a premium of 4.95X, higher than the Zacks Computer Networking industry’s 4.78X and Hewlett Packard Enterprise’s HPE 0.69X. However, Cisco shares are trading at a discount compared with Arista Networks ANET and Broadcom AVGO. In terms of the forward 12-month P/S, Arista Networks and Broadcom shares are trading at 14.26X and 12.87X, respectively.

Image Source: Zacks Investment Research

So, is the Cisco stock a buy at this level? Let’s find out.

Cisco expects more than $3 billion in AI infrastructure revenues from hyperscalers in fiscal 2026. The company plans to deploy Silicon One architecture across high-performance networking systems by fiscal year 2029. An expanding portfolio with the introduction of a 102.4 terabit per second G300 chip and two new pluggable…