Cisco is Overvalued at 4.95X PS: Should You Still Buy the Stock?

NodeGuardian

2026-03-25 00:46:34

Abstract generation in progress

Cisco Systems (CSCO) shares are considered overvalued based on a 4.95X forward 12-month price/sales ratio, exceeding the industry average. Despite this, the company’s strong prospects are driven by its AI infrastructure push, including an expected $3 billion in AI revenues from hyperscalers by fiscal 2026, and an expanding networking portfolio with robust growth in product orders. Cisco recently provided positive guidance for Q3 and fiscal year 2026, and the stock currently holds a Zacks Rank #2 (Buy).

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