CSCO PEG Ratio Analysis
Higher than 63% of TECHNOLOGY sector peers
Updated 269h ago·SEC filings & market data
Key Takeaway
The PEG ratio measures a stock's price-to-earnings multiple relative to its expected earnings growth; a value of 1.05x suggests the price is roughly in line with growth prospects.
Sector Performance
63th percentileCSCO
1.05x
Sector Median
0.87x
Sector Avg
4.34x
Prior Period
1.08x(Jul 2026)
Deep Analysis
The PEG ratio measures a stock's price-to-earnings multiple relative to its expected earnings growth; a value of 1.05x suggests the price is roughly in line with growth prospects.
Compared to sector peers, this is above the TECHNOLOGY median of 0.87x, placing CSCO at the 62nd percentile among peers. The metric's trend shows no year-over-year change (N/A), but the quarter-over-quarter change is -2.8%, moving from 1.08x to the current 1.05x. This combination — a valuation slightly pricier than the sector median but with a recent downward drift — implies moderate risk: the stock is not cheap, yet the improvement could reduce pressure if growth expectations hold. The level does not clearly contradict the overall NEUTRAL verdict; it reinforces a balanced view, as the PEG is above average but not extreme, and the recent decline is small. Thus, this metric supports the NEUTRAL stance rather than suggesting either a strong buy or sell signal.
Frequently Asked Questions
What does the PEG Ratio tell investors about CSCO?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does CSCO's PEG Ratio compare to its sector?
CSCO's PEG Ratio of 1.05x compares to a TECHNOLOGY sector median of 0.87x, placing it in the 63th percentile.
Who are CSCO's closest peers by PEG Ratio?
The closest TECHNOLOGY peers by PEG Ratio include: HPQ (0.87x), TXN (0.79x), ORCL (0.76x), HPE (0.27x), QCOM (0.12x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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1.05x
Sector Median
0.87x
Sector Avg
4.34x
How CSCO's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.