PEG Ratio
Higher than 20% of TECHNOLOGY sector peers
Updated 417h ago
Sector Performance
20th percentileCSCO
1.08x
Sector Median
1.91x
Sector Avg
7.23x
Deep Analysis
The PEG ratio combines a stock's price-to-earnings (P/E) ratio with its earnings growth rate; a value of 1.08x suggests the stock is priced roughly in line with its expected earnings growth, often considered fairly valued.
At 1.08x, CSCO trades below the sector median of 1.64x and sits at the 0th percentile among sector peers, meaning it has the lowest PEG ratio in the group. Both the year-over-year and quarter-over-quarter changes are not available (N/A), so no trend can be assessed from past data alone. With a low PEG ratio and no historical direction, the metric implies a potential valuation discount relative to peers but offers no signal from recent momentum. This low PEG ratio generally supports a more bullish tilt, but the stock’s overall NEUTRAL verdict suggests other factors (such as growth consistency or macroeconomic headwinds) offset this valuation advantage. Therefore, the PEG ratio does not strongly contradict the NEUTRAL stance but indicates that upside may require additional catalysts beyond current pricing.
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 1.08x compares to a TECHNOLOGY sector median of 1.91x, placing it in the 20th percentile.
Who are CSCO's closest peers by PEG Ratio?
The closest TECHNOLOGY peers by PEG Ratio include: TXN (1.63x), LRCX (2.19x), ORCL (0.96x), KLAC (8.25x), NOW (29.27x).
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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1.08x
Sector Median
1.91x
Sector Avg
7.23x
How CSCO's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.