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Cisco Systems, Inc. (CSCO) — Structural Peer Analysis

Cisco Systems, Inc. ranks in an above-average position in its peer group, with a broadly solid profile across the main structural dimensions.

Updated 2026-05-17 · NASDAQ100
ENTRY TODAY
Elevated price zoneabove norm
TODAY (5y history)99th pct today
0th50th100th
Today the stock sits in a historically elevated range and its multiple is above its own norm.
Describes where today's entry sits in the stock's own long-term price and valuation history. Descriptive only. Not investment advice.
Dimension Profile

Peer-relative scores, weakest to strongest

Weakest Valuation 52
Above median
Weak Growth 60
Above median
Moderate Stability 78
Top 25% of peers
Strongest Profitability 79
Top 25% of peers
Peer-Relative Score
67
Peer-Score
Above-average peer position
Signal qualitylow
Structural Read

Cisco’s Premium Rests on AI Growth

Cisco Systems designs and sells networking hardware, software, and telecommunications equipment, serving enterprises and service providers worldwide.

Cisco is traded as an AI infrastructure beneficiary with lasting momentum. The company’s operating margin of 28.7% signals robust profitability, well above the peer median, and Cisco is rapidly expanding its AI infrastructure orders, which supports growth expectations and keeps the P/E at 19.0—a premium to the sector average that reflects high expectations. Cisco combines its traditional networking business with a fast-growing AI infrastructure segment, which drives the current valuation. The market prices this trajectory with a valuation premium, but reacts swiftly: any drop in AI orders or a strong competitive move is typically met with a rapid compression of that premium.

AssetNext · 2026-05-17 · Rule-based and descriptive. Not investment advice.

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This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.