Meraki
-23%
est. 2Y upside i
Rank
#3195
Sector
Cloud Networking & IT Management
Est. Liquidity
~0Y
Data Quality
Data: MediumMeraki, a $1.7B revenue subsidiary of Cisco, operates in a competitive but growing cloud networking market with a strong moat.
Last updated: March 10, 2026
Meraki leverages Cisco's new AI-at-the-edge initiatives and expands its cloud-managed solutions into new high-growth verticals, accelerating revenue growth to 25% YoY from $1.7B. This could justify a 10x revenue multiple, pushing its hypothetical valuation to $22.8B, representing a +90% upside.
Meraki maintains its strong position in cloud networking and IT management, growing revenue at 15-18% YoY from $1.7B, in line with its TAM's weighted growth. Its hybrid revenue model and integration with Cisco's broader portfolio support a stable 7-8x revenue multiple, leading to a hypothetical valuation of $15B, representing a +25% upside.
Intense competition from HPE Aruba and Fortinet, coupled with slowing adoption in core markets and end-of-life product announcements, erodes Meraki's market share and slows revenue growth to single digits. Cisco's strategic priorities shift, leading to less investment. This could compress its revenue multiple to 4-5x, reducing its hypothetical valuation to $7.2B, representing a -40% downside.
Preference Stack Risk
lowInvestors hold $40M in liquidation preferences, which is a negligible amount compared to the hypothetical $12B valuation.
Dilution Risk
lowAs a mature business with substantial revenue and operating as a Cisco subsidiary, significant further dilution from additional funding rounds is unlikely.
Secondary Liquidity
activeAs Meraki is a subsidiary of Cisco, equity would likely be in Cisco stock, which is highly liquid on public markets.
Questions to Ask at the Interview
Strategic questions based on Meraki's data — designed to show you've done your homework.
- 1
“Given Meraki's strong competitive moat but 'medium' incumbent threat from players like HPE Aruba and Fortinet, how does Meraki plan to maintain its market share and pricing power, especially with recent product end-of-life announcements for several devices in 2026?”
- 2
“With Meraki's $1.7B revenue and a hybrid model across diverse TAM segments, what are the key strategic priorities for accelerating growth beyond the current 18% weighted TAM growth, particularly in the higher-growth Enterprise WLAN and Mobile Device Management segments?”
- 3
“As a Cisco subsidiary, the equity offered would typically be Cisco stock. How does Meraki's performance specifically contribute to Cisco's overall valuation, and what is the company's internal view on potential future liquidity events or spin-offs for Meraki as a distinct entity?”
Community
Valuation Sentiment
Our model estimates -23% upside. What do you think?
Anonymous. Do not share material non-public information.
Community Discussion
Comments are reviewed before they appear publicly.
Loading comments...
Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.