By Trefis Team
Publication Date: 2026-10-07 18:29:00
Shares of Cisco Systems (CSCO) have returned 77% over the past twelve months, well ahead of the 17.8% return for the S&P 500. The company is selling significantly more networking equipment than it did a year ago, which may be what investors are paying up for. Anyone sitting on the sidelines now faces a steeper entry price. So what is a buyer who missed that run paying for Cisco now?
A Buyer Pays 7.4 Times Cisco’s Annual Sales
At 7.4 times annual sales, Cisco stock is trading near the highest valuation investors have accepted in ten years. Over that time frame, the multiple has ranged from 3.1 to 7.6. The stock also trades at 35.1 times earnings, representing a premium to the 21.5 multiple for the S&P 500.
Yet the company is not much more profitable than usual. Cisco generated an operating margin of 25.4% over the last twelve months, which sits close to its three-year average of 23.8%.
Growth is what has changed. Networking, Cisco’s largest product category,…
