Cisco makes a significant portion of its money from selling routers and switches used for directing internet data traffic. This email is likely to have traveled through at least one Cisco router or switch to reach you.
Our stock price estimate for Cisco is $19.84 compared to a market price of $18.34 as of Friday. Network switches constitutes 25% of Cisco’s stock price, based on our estimates. It is a mature market, and Cisco’s leadership may be exposed to low cost Asian providers.
Cisco’s hardware is sold primarily to medium and large businesses as well as internet service providers. The company currently dominates the ~$17 billion Bottom Layer Switch Market with over 60% market share, up from 50% in 2005. However, low cost Asian players like Huawei now have some experience in the switches market.
Within Cisco’s content on our platform explore whether Cisco’s Bottom Layer Switch Market Share may be under pressure, and if so, change the market share forecast to see how that might impact Cisco’s stock price.
