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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 Sep 4, 2026.

As of Sep 4, 2026, Fair Value Calculator sees Microsoft as the less overvalued of the two: Cisco Systems trades at $109 versus a fair value of $80.31 (-26%), while Microsoft trades at $510 versus $381 (-25%).
Cisco Systems
CSCO · USD · Information Technology
-26%
upside to fair value
overvalued
Price$109
Fair Value$80.31
Quality74/100
Microsoft
MSFT · USD · Information Technology
-25%
upside to fair value
overvalued
Price$510
Fair Value$381
Quality66/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Cisco SystemsMicrosoft
Valuation
40.4×P/E (TTM)22.9×
7.87×P/S (TTM)8.99×
10.21×P/B8.33×
29.0×EV/EBITDA15.6×
1.68×PEG1.19×
−26.1%Fair value upside−25.3%
1.5%Dividend yield0.7%
$1.65Dividend per share$3.56
Profitability
25%Operating margin46%
0.75×EBIT margin trend (5Y)1.23×
25%Return on equity34%
7%Return on assets15%
Growth
12%Revenue growth (YoY)18%
3.2%Avg. growth/yr (3Y)12.4%
2.8%Avg. growth/yr (5Y)14.5%
+1.6%Value creation/yr+19.5%
Balance & size
7.4×Interest coverage (EBIT/interest)53.9×
0.49×Debt / equity0.12×
$478BMarket cap$2.9T
healthyGrowth qualityexpensive

Microsoft leads: 3 to 13 metric wins.

Dash = 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 Systemsof which business quality 70 · market factors 71 Microsoftof which business quality 65 · market factors 57
ProfitabilityMargins and returns on capital today
58
75
Quality GrowthAre margins and returns improving?
46
53
CashflowEarnings quality: real cash, not paper profit
85
71
Fin. StrengthBalance sheet, leverage, solvency risk
64
79
InvestmentDisciplined investing over empire-building
75
1
Low VolatilityCalm price path (market factor)
60
57
MomentumPrice trend over the last 3–12 months (market factor)
71
57
52W MomentumDistance to the 52-week high (market factor)
84
57
Net IssuanceBuybacks instead of dilution
97
84

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 $109MicrosoftPrice $510
DCF Models-37%below the price$68.44-35%below the price$333
Earnings-Based-77%below the price$25.45-63%below the price$189
Dividend Discount-71%below the price$31.20-88%below the price$61.93
Multiples-51%below the price$53.39-40%below the price$308
Asset-Based-93%below the price$7.96-94%below the price$30.98
Growth DCF-46%below the price$58.14-51%below the price$249
Economic Profit-74%below the price$28.50-64%below the price$184
Growth Earnings-53%below the price$50.63-35%below the price$332
Minimum-93%below the price$7.96-94%below the price$30.98
Maximum-37%below the price$68.44-35%below the price$333
Median-62%below the price$40.91-57%below the price$219
Geometric mean-68%below the price$34.35-68%below the price$166

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Cisco Systems: 26 of 26 models see the stock below the current price.

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

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Cisco Systems
Bear $51.06Fair Value $80.31Bull $102
$109 = current price (white tick)
Microsoft
Bear $192Fair Value $381Bull $480
$510 = current price (white tick)

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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 score74 · Top 25%
Fair value upside-26% · above median

Microsoft · Information Technology

Quality score66 · Top 25%
Fair value upside-25% · above median

Bottom line

As of Sep 4, 2026, Fair Value Calculator sees Microsoft as the less overvalued of the two: Cisco Systems trades at $109 versus a fair value of $80.31 (-26%), while Microsoft trades at $510 versus $381 (-25%).

Cisco Systems has the higher quality score (74/100).

See the full analysis →
Cisco Systems · Microsoft

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