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STOCK COMPARISON

Cisco Systems vs Microsoft: Fair Value & Quality

Both stocks run through our valuation models. Here is how Cisco Systems (CSCO) and Microsoft (MSFT) compare, as of Oct 30, 2026.

As of Oct 30, 2026, Fair Value Calculator sees Cisco Systems as the more attractively valued of the two: Cisco Systems trades at $105 versus a fair value of $123 (+17.2%), while Microsoft trades at $522 versus $584 (+11.9%).
Cisco Systems
CSCO · USD · Information Technology
+17.2%
upside to fair value
undervalued
Price$105
Fair Value$123
Quality76/100
Fair ValueQualityUptrend
Microsoft
MSFT · USD · Information Technology
+11.9%
upside to fair value
undervalued
Price$522
Fair Value$584
Quality66/100
Fair ValueQualityUptrend
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

Cisco SystemsMicrosoft
Valuation
32.6×P/E (TTM)29.5×
18.6×Forward P/E (FY2028)22.0×
20.2×Median P/E at FY-end (10 FY, ex one-offs where documented)34.4×
6.84×P/S (TTM)11.91×
8.61× · book value is mostly goodwillP/B8.93×
23.9×EV/EBITDA20.4×
0.98×PEG1.73×
+17.2%Fair value upside+11.9%
1.5%Dividend yield0.7%
$1.66Dividend per share$3.64
Profitability
27.7%Operating margin45.1%
0.94×EBIT margin trend (5Y)1.13×
27.3%Return on equity34.0%
10.2%Return on assets17.6%
Growth
17.6%Revenue growth (YoY)17.7%
3.6%Avg. growth/yr (3Y)16.1%
4.9%Avg. growth/yr (5Y)14.6%
+6.3%Value creation/yr+17.5%
Balance & size
10.5×Interest coverage (EBIT/interest)50.9×
0.39×Debt / equity0.07×
$433BMarket cap$4.0T
healthyGrowth qualityexpensive
Cisco Systems, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 20.2. Microsoft, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2017, FY2026 ex one-offs: 34.4.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

Microsoft leads: 5 to 10 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Cisco Systems Microsoft
ProfitabilityHow much profit the company makes from its sales and capital
66
76
Quality GrowthAre margins and returns getting better?
66
64
CashflowDo the profits arrive as real cash?
73
61
Financial strengthDebt, balance sheet and risk of trouble
62
79
InvestmentDoes it invest with discipline instead of growing at any price?
79
0
Low VolatilityHow calm the share price moves, does not count
59
58
MomentumPrice trend of the last 3 to 12 months, does not count
62
53
Near the 52-week highDistance to the 52-week high, does not count
73
60
New sharesBuys back shares or issues new ones?
88
83

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyCisco SystemsPrice $105MicrosoftPrice $522
DCF Models−28.1%below the price$75.14−30.0%below the price$365
Earnings-Based−69.4%below the price$31.99−51.6%below the price$252
Dividend Discount−70.6%below the price$30.78−87.9%below the price$63.20
Multiples−27.2%below the price$76.10−32.8%below the price$350
Asset-Basedn/a−94.7%below the price$27.44
Growth DCF−37.9%below the price$64.95−51.8%below the price$251
Economic Profit−66.4%below the price$35.15−60.6%below the price$205
Growth Earnings−36.7%below the price$66.18−15.7%below the price$440
Matching families7 of 8
Minimum−70.6%below the price$30.78−87.9%below the price$63.20
Maximum−27.2%below the price$76.10−15.7%below the price$440
Median−37.9%below the price$64.95−51.6%below the price$252
Geometric mean−51.6%below the price$50.61−53.9%below the price$240
Ahead family by family4 of 73 of 7

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 7 of 8), so a family without a value on one side does not distort the comparison. Ahead in a family is the stock whose fair value there sits higher relative to its price. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Family by family: Cisco Systems is ahead in 4 of 7 shared families, Microsoft in 3.

Cisco Systems: 24 of 24 models see the stock below the current price.

Microsoft: 23 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Cisco Systems
Price $105
Fair Value $123
Bear $78.55Bull $166
Microsoft
Price $522
Fair Value $584
Bear $292Bull $759

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Cisco Systems · Information Technology

Quality score76 · Top 25%
Fair value upside+17.2% · above median

Microsoft · Information Technology

Quality score66 · Top 25%
Fair value upside+11.9% · above median

Bottom line

As of Oct 30, 2026, Fair Value Calculator sees Cisco Systems as the more attractively valued of the two: Cisco Systems trades at $105 versus a fair value of $123 (+17.2%), while Microsoft trades at $522 versus $584 (+11.9%).

Cisco Systems has the higher quality score (76/100).

Open Cisco Systems live analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.