CSCONEUTRAL

EV/EBITDA

28.2x

Higher than 29% of TECHNOLOGY sector peers

Updated 417h ago

Sector Performance

29th percentile

CSCO

28.2x

Sector Median

34.6x

Sector Avg

38.9x

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Deep Analysis

EV/EBITDA compares a company’s total enterprise value to its earnings before interest, taxes, depreciation, and amortization — essentially measuring how many years of cash profit it would take to buy the entire business.

CSCO’s current EV/EBITDA of 28.2x is well below the sector median of 48.5x, placing it at the 0th percentile among peers, meaning it carries the lowest multiple in the TECHNOLOGY group. Year-over-year change is not available, but quarter-over-quarter the metric surged 48.0% from 19.0x to 28.2x. The combination of a still-low absolute multiple with a sharp upward trend suggests the market is re-rating CSCO higher, which could narrow the valuation discount — offering a moderate opportunity if the trend continues, but also introducing risk if the pace is unsustainable. This profile neither confirms an outright bargain nor signals overvaluation, as the low percentile contrasts with rapid recent expansion. Therefore, the metric supports the overall NEUTRAL verdict by indicating a balanced risk/reward scenario rather than a clear bullish or bearish signal.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CSCO?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does CSCO's EV/EBITDA compare to its sector?

CSCO's EV/EBITDA of 28.2x compares to a TECHNOLOGY sector median of 34.6x, placing it in the 29th percentile.

Who are CSCO's closest peers by EV/EBITDA?

The closest TECHNOLOGY peers by EV/EBITDA include: TXN (32.7x), NOW (36.5x), KLAC (51.6x), ORCL (16.6x), MU (15.2x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.