ANET PE Ratio & Valuation,Is ANET Overvalued

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 38.98 is considered Overvalued compared with the five-year average of 32.77. The fair price of Arista Networks Inc (ANET) is between 82.17 to 120.74 according to relative valuation methord. Compared to the current price of 124.76 USD , Arista Networks Inc is Overvalued By 3.33%.

Relative Value

Fair Zone

82.17-120.74

Current Price：124.76

3.33%

Overvalued

39.34

30.04

EV/EBITDA

Arista Networks Inc. (ANET) has a current EV/EBITDA of 30.04. The 5-year average EV/EBITDA is 24.03. The thresholds are as follows: Strongly Undervalued below 10.46, Undervalued between 10.46 and 17.25, Fairly Valued between 30.82 and 17.25, Overvalued between 30.82 and 37.60, and Strongly Overvalued above 37.60. The current Forward EV/EBITDA of 30.04 falls within the Historic Trend Line -Fairly Valued range.

30.44

EV/EBIT

Arista Networks Inc. (ANET) has a current EV/EBIT of 30.44. The 5-year average EV/EBIT is 24.45. The thresholds are as follows: Strongly Undervalued below 10.97, Undervalued between 10.97 and 17.71, Fairly Valued between 31.19 and 17.71, Overvalued between 31.19 and 37.93, and Strongly Overvalued above 37.93. The current Forward EV/EBIT of 30.44 falls within the Historic Trend Line -Fairly Valued range.

15.43

Arista Networks Inc. (ANET) has a current PS of 15.43. The 5-year average PS is 11.13. The thresholds are as follows: Strongly Undervalued below 4.05, Undervalued between 4.05 and 7.59, Fairly Valued between 14.66 and 7.59, Overvalued between 14.66 and 18.20, and Strongly Overvalued above 18.20. The current Forward PS of 15.43 falls within the Overvalued range.

34.33

P/OCF

Arista Networks Inc. (ANET) has a current P/OCF of 34.33. The 5-year average P/OCF is 30.67. The thresholds are as follows: Strongly Undervalued below 15.32, Undervalued between 15.32 and 22.99, Fairly Valued between 38.34 and 22.99, Overvalued between 38.34 and 46.02, and Strongly Overvalued above 46.02. The current Forward P/OCF of 34.33 falls within the Historic Trend Line -Fairly Valued range.

34.83

P/FCF

Arista Networks Inc. (ANET) has a current P/FCF of 34.83. The 5-year average P/FCF is 32.37. The thresholds are as follows: Strongly Undervalued below 17.40, Undervalued between 17.40 and 24.89, Fairly Valued between 39.86 and 24.89, Overvalued between 39.86 and 47.35, and Strongly Overvalued above 47.35. The current Forward P/FCF of 34.83 falls within the Historic Trend Line -Fairly Valued range.

Arista Networks Inc (ANET) has a current Price-to-Book (P/B) ratio of 13.19. Compared to its 3-year average P/B ratio of 11.74 , the current P/B ratio is approximately 12.34% higher. Relative to its 5-year average P/B ratio of 10.35, the current P/B ratio is about 27.47% higher. Arista Networks Inc (ANET) has a Forward Free Cash Flow (FCF) yield of approximately 2.58%. Compared to its 3-year average FCF yield of 2.24%, the current FCF yield is approximately 15.02% lower. Relative to its 5-year average FCF yield of 2.41% , the current FCF yield is about 6.81% lower.

13.32

P/B

Median3y

11.74

Median5y

10.35

2.58

FCF Yield

Median3y

2.24

Median5y

2.41

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

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ANET increased by 13.90% 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 -3.03%to the performance.

Overall, the performance of ANET in the past 1 year is driven by Revenue Growth. Which is more sustainable.

27.46%

1.81B → 2.31B

Revenue Growth

-10.53%

41.30 → 36.95

Margin Expansion

-3.03%

49.38 → 47.89

P/E Change

13.90%

110.53 → 125.89

Mkt Cap Growth

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Frequently Asked Questions

Is Arista Networks Inc (ANET) currently overvalued or undervalued?

What is Arista Networks Inc (ANET) fair value?

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. The fair price of Arista Networks Inc (ANET) is between 82.17 to 120.74 according to relative valuation methord.

How does ANET's valuation metrics compare to the industry average?

What is the current P/B ratio for Arista Networks Inc (ANET) as of Dec 16 2025?

As of Dec 16 2025, Arista Networks Inc (ANET) has a P/B ratio of 13.19. This indicates that the market values ANET at 13.19 times its book value.

What is the current FCF Yield for Arista Networks Inc (ANET) as of Dec 16 2025?

As of Dec 16 2025, Arista Networks Inc (ANET) has a FCF Yield of 2.58%. This means that for every dollar of Arista Networks Inc’s market capitalization, the company generates 2.58 cents in free cash flow.

What is the current Forward P/E ratio for Arista Networks Inc (ANET) as of Dec 16 2025?

As of Dec 16 2025, Arista Networks Inc (ANET) has a Forward P/E ratio of 38.98. This means the market is willing to pay $38.98 for every dollar of Arista Networks Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Arista Networks Inc (ANET) as of Dec 16 2025?

As of Dec 16 2025, Arista Networks Inc (ANET) has a Forward P/S ratio of 15.43. This means the market is valuing ANET at $15.43 for every dollar of expected revenue over the next 12 months.

ANET Valuation