CSCO EV/EBITDA Analysis

EV/EBITDA measures a company's enterprise value relative to its operating earnings before interest, taxes, depreciation, and amortization; at 24.3x, CSCO trades at 24.3 times that earnings measure, signaling a premium valuation for a technology firm.

This exactly matches the sector median of 24.3x, placing CSCO at the 50th percentile among peers—neither expensive nor cheap relative to its sector. The metric is decreasing, with a quarter-over-quarter decline of 16.7% (from 29.1x to 24.3x), while year-over-year change is not available, and the last three values (24.3x, 29.1x, 27.0x) confirm a downward trend over recent quarters. A valuation that remains at the sector midpoint while compressing suggests the market is gradually lowering its earnings multiple, which could reduce downside risk if earnings hold but also caps near-term upside from multiple expansion. This combination of a fair relative level with a falling trend implies balanced risk—no clear overvaluation or undervaluation, but momentum in the metric favors caution. This supports the overall NEUTRAL verdict, as the EV/EBITDA shows no compelling reason to overweight or underweight the stock relative to its sector.

Frequently Asked Questions

Closest Sector Peers