Home / Street Sector / Critical Profitability Ratio Analysis Under Limelight: Cisco Systems, Inc. (NASDAQ:CSCO), Momo Inc. (NASDAQ:MOMO)

Critical Profitability Ratio Analysis Under Limelight: Cisco Systems, Inc. (NASDAQ:CSCO), Momo Inc. (NASDAQ:MOMO)

Cisco Systems, Inc. (NASDAQ:CSCO) runs in leading trade, it are knocking down -0.30% to traded at $30.35.  Cisco (CSCO) released that appointment of Amy L. Chang, CEO and founder of Acfirm, Inc., to its BOD effective.

Cisco Executive Chairman John Chambers said that Drawing on her years of experience as a McKinsey consultant, advisor to numerous tech start-ups, an executive at Google, and now CEO of Acfirm, Amy will provide fresh insights to their technology and business priorities as they continue to transform their business at an accelerated pace.

CEO of Cisco, Chuck Robbins stated that they are very happy to have Amy join their board and look forward to her contributions.  Amy is a Silicon Valley leader and she understands the power we have to reimaging the way they can do business. Her experience as an entrepreneur, an engineer, and an industry disruptor will be invaluable to Cisco and to their consumers in this new digital business environment.

To find out the technical position of CSCO, it holds price to book ratio of 2.40 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 11.83, and price to earnings ratio calculated as 14.37. The price to earnings growth ration calculated as 1.54. CSCO is presenting price to cash flow of 2.31 and free cash flow concluded as 19.82.

EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 20.90%, and looking further price to next year’s EPS is 5.64%. While take a short look on price to sales ratio, that was 3.09 and price to earning ration of 14.37 attracting passive investors.

Momo Inc. (NASDAQ:MOMO) kept active in under and overvalue discussion, MOMO holds price to book ratio of 9.15 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 175.72, which is authentic method to judge but not universal for all situation.

Fundament/ News Factor in Focus

Taking look on ratio analysis, MOMO has forward price to earnings ratio of 28.20, compare to its price to earnings ratio of 175.72. The co is presenting price to cash flow as 9.49 and while calculating price to free cash flow it concluded at 62.32, the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.

The firm has price volatility of 4.66% for a week and 5.96% for a month. Narrow down four to firm performance, its weekly performance was, -0.16% and monthly performance was 2.58%.


About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

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