The pandemic has caused new challenges for Cisco (CSCO) as enterprises and carriers have cut back on capital expenditures. But its transformation into a subscription business is on track and at current prices, the company's stock is a steal. The company trades at just 13x earnings. By almost every measure, Cisco is undervalued when compared to other SaaS businesses. After this pandemic, Cisco's businesses will shine and at that time it will command a higher multiple.
Exhibit: Cisco Has Great Free Cash Flow Yield Compared to Cloud Companies Such as Salesforce