Cisco Systems Inc (CSCO) is overvalued and Hewlett Packard Enterprise Co (HPE) is overvalued.
Both trade above our estimate of their intrinsic value. CSCO is the closer of the two: -101%, against -5467% for HPE.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.7% (average of 3 methods) values the shares at $53.03; the price of $106.44 is 101% above that value, and 73% of that value comes from beyond year five.
Leak Score 44/100 on 10 of 12 signals
Its through-the-cycle earnings (4.2% median margin), capitalised at 10.4% with no growth, values the shares at $1.10; the price of $61.03 is 5467% above that value.
Leak Score 33/100 on 10 of 12 signals
| Metric | CSCO | HPE |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $106.44 | $61.03 |
| Intrinsic value | $53.03 | $1.10 |
| Margin of safety | -101% | -5467% |
| Leak Score | 44/100 (10/12) | 33/100 (10/12) |
| Market cap | $419.6B | $81.0B |
| Revenue growth, 5 years | 4.9% | 5.0% |
| Operating margin | 25.2% | 8.0% |
| Net margin | 20.9% | 6.4% |
| Return on equity | 27.3% | 11.0% |
| Debt to equity | 0.62 | 0.76 |
| P/E | 32.0x | 31.8x |
| Forward P/E | 19.2x | 13.3x |
| P/B | 8.3x | 3.1x |
| Dividend yield | 1.6% | 0.9% |