ANET Relative Valuation
ANET's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ANET is overvalued; if below, it's undervalued.
Historical Valuation
Arista Networks Inc (ANET) is now in the Overvalued zone, suggesting that its current forward PE ratio of 40.16 is considered Overvalued compared with the five-year average of 32.70. The fair price of Arista Networks Inc (ANET) is between 81.87 to 120.35 according to relative valuation methord. Compared to the current price of 128.55 USD , Arista Networks Inc is Overvalued By 6.81%.
Relative Value
Fair Zone
81.87-120.35
Current Price：128.55
6.81%
Overvalued
40.16
PE
1Y
3Y
5Y
Trailing
Forward
30.82
EV/EBITDA
Arista Networks Inc. (ANET) has a current EV/EBITDA of 30.82. The 5-year average EV/EBITDA is 23.96. The thresholds are as follows: Strongly Undervalued below 10.41, Undervalued between 10.41 and 17.18, Fairly Valued between 30.73 and 17.18, Overvalued between 30.73 and 37.51, and Strongly Overvalued above 37.51. The current Forward EV/EBITDA of 30.82 falls within the Overvalued range.
31.23
EV/EBIT
Arista Networks Inc. (ANET) has a current EV/EBIT of 31.23. The 5-year average EV/EBIT is 24.38. The thresholds are as follows: Strongly Undervalued below 10.92, Undervalued between 10.92 and 17.65, Fairly Valued between 31.11 and 17.65, Overvalued between 31.11 and 37.84, and Strongly Overvalued above 37.84. The current Forward EV/EBIT of 31.23 falls within the Overvalued range.
15.56
PS
Arista Networks Inc. (ANET) has a current PS of 15.56. The 5-year average PS is 11.08. The thresholds are as follows: Strongly Undervalued below 4.05, Undervalued between 4.05 and 7.56, Fairly Valued between 14.59 and 7.56, Overvalued between 14.59 and 18.11, and Strongly Overvalued above 18.11. The current Forward PS of 15.56 falls within the Overvalued range.
35.17
P/OCF
Arista Networks Inc. (ANET) has a current P/OCF of 35.17. The 5-year average P/OCF is 30.61. The thresholds are as follows: Strongly Undervalued below 15.27, Undervalued between 15.27 and 22.94, Fairly Valued between 38.29 and 22.94, Overvalued between 38.29 and 45.96, and Strongly Overvalued above 45.96. The current Forward P/OCF of 35.17 falls within the Historic Trend Line -Fairly Valued range.
35.67
P/FCF
Arista Networks Inc. (ANET) has a current P/FCF of 35.67. The 5-year average P/FCF is 32.32. The thresholds are as follows: Strongly Undervalued below 17.33, Undervalued between 17.33 and 24.83, Fairly Valued between 39.81 and 24.83, Overvalued between 39.81 and 47.31, and Strongly Overvalued above 47.31. The current Forward P/FCF of 35.67 falls within the Historic Trend Line -Fairly Valued range.
Arista Networks Inc (ANET) has a current Price-to-Book (P/B) ratio of 13.59. Compared to its 3-year average P/B ratio of 11.69 , the current P/B ratio is approximately 16.29% higher. Relative to its 5-year average P/B ratio of 10.31, the current P/B ratio is about 31.87% higher. Arista Networks Inc (ANET) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.23%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.42% , the current FCF yield is about -100.00% lower.
13.59
P/B
Median3y
11.69
Median5y
10.31
2.51
FCF Yield
Median3y
2.23
Median5y
2.42
Competitors Valuation Multiple
The average P/S ratio for ANET's competitors is , providing a benchmark for relative valuation. Arista Networks Inc Corp (ANET) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 27.46%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ANET increased by 16.30% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.81B to 2.31B.
The secondary factor is the P/E Change, contributed -0.63%to the performance.
Overall, the performance of ANET in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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