Cisco Systems, Inc. logo CSCO - Cisco Systems, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 38
HOLD 34
SELL 1
STRONG
SELL
0
| PRICE TARGET: $122.30 DETAILS
HIGH: $137.00
LOW: $100.00
MEDIAN: $123.00
CONSENSUS: $122.30
UPSIDE: 3.36%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Strong
Trading 69.6% above fair value
Current Price $118.33
Bear Case $55.80 52.8% downside ($55.80 - $118.33) / $118.33 = -52.8% $2.76 × 12x P/E
Fair Value $69.75 41.1% downside ($69.75 - $118.33) / $118.33 = -41.1% $2.76 × 15x P/E
Bull Case $83.70 29.3% downside ($83.70 - $118.33) / $118.33 = -29.3% $2.76 × 18x P/E

Adjust Assumptions

15.0x
2.76$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 42.8x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $122.30 from 73 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $69.75 per share.

Warnings

Dividend-based valuation: $28.46 (below our primary estimate by 31%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $122.30 (from 73 analysts). Our estimate is 66% below the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples