Cisco Systems Inc.: Lessons In Valuation

2021-11-18

Introduction

Cisco Systems (CSCO) reported fiscal Q1 earnings and offered what many consider to be downbeat quarterly revenue guidance.  As a result, Cisco stock was down as much as 9.2% at one point and is currently down about 8%.  In this video I will illustrate how Cisco’s revenue guidance has been expected by analysts forecasts and therefore should not have been a surprise.  Additionally, I will illustrate that Cisco’s stock price was approximately 10% overvalued prior to the earnings announcement and has thus fallen pretty much in alignment with its intrinsic value.

Cisco FAST Graph
Cisco FAST Graphs

The main reason I chose to do this video today is because I feel that it offers great lessons in valuation.  In November 2019 I did a previous video on Cisco referring to valuation, therefore, this video provides an interesting update from the one I did in 2019.  Moreover, I humbly suggest that you watch this video to the end where I make a very important announcement.

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Disclosure: Long CSCO

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