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 41.71 is considered Overvalued compared with the five-year average of 32.89. The fair price of Arista Networks Inc (ANET) is between 80.91 to 118.65 according to relative valuation methord. Compared to the current price of 130.08 USD , Arista Networks Inc is Overvalued By 9.63%.
Relative Value
Fair Zone
80.91-118.65
Current Price：130.08
9.63%
Overvalued
41.71
PE
1Y
3Y
5Y
32.22
EV/EBITDA
Arista Networks Inc. (ANET) has a current EV/EBITDA of 32.22. The 5-year average EV/EBITDA is 24.17. The thresholds are as follows: Strongly Undervalued below 10.58, Undervalued between 10.58 and 17.38, Fairly Valued between 30.97 and 17.38, Overvalued between 30.97 and 37.77, and Strongly Overvalued above 37.77. The current Forward EV/EBITDA of 32.22 falls within the Overvalued range.
33.72
EV/EBIT
Arista Networks Inc. (ANET) has a current EV/EBIT of 33.72. The 5-year average EV/EBIT is 24.62. The thresholds are as follows: Strongly Undervalued below 11.04, Undervalued between 11.04 and 17.83, Fairly Valued between 31.41 and 17.83, Overvalued between 31.41 and 38.20, and Strongly Overvalued above 38.20. The current Forward EV/EBIT of 33.72 falls within the Overvalued range.
16.24
PS
Arista Networks Inc. (ANET) has a current PS of 16.24. The 5-year average PS is 11.20. The thresholds are as follows: Strongly Undervalued below 4.11, Undervalued between 4.11 and 7.66, Fairly Valued between 14.75 and 7.66, Overvalued between 14.75 and 18.30, and Strongly Overvalued above 18.30. The current Forward PS of 16.24 falls within the Overvalued range.
36.55
P/OCF
Arista Networks Inc. (ANET) has a current P/OCF of 36.55. The 5-year average P/OCF is 30.79. The thresholds are as follows: Strongly Undervalued below 15.47, Undervalued between 15.47 and 23.13, Fairly Valued between 38.44 and 23.13, Overvalued between 38.44 and 46.10, and Strongly Overvalued above 46.10. The current Forward P/OCF of 36.55 falls within the Historic Trend Line -Fairly Valued range.
37.29
P/FCF
Arista Networks Inc. (ANET) has a current P/FCF of 37.29. The 5-year average P/FCF is 32.49. The thresholds are as follows: Strongly Undervalued below 17.57, Undervalued between 17.57 and 25.03, Fairly Valued between 39.95 and 25.03, Overvalued between 39.95 and 47.41, and Strongly Overvalued above 47.41. The current Forward P/FCF of 37.29 falls within the Historic Trend Line -Fairly Valued range.
Arista Networks Inc (ANET) has a current Price-to-Book (P/B) ratio of 14.13. Compared to its 3-year average P/B ratio of 11.84 , the current P/B ratio is approximately 19.31% higher. Relative to its 5-year average P/B ratio of 10.42, the current P/B ratio is about 35.53% higher. Arista Networks Inc (ANET) has a Forward Free Cash Flow (FCF) yield of approximately 2.40%. Compared to its 3-year average FCF yield of 2.25%, the current FCF yield is approximately 6.66% lower. Relative to its 5-year average FCF yield of 2.40% , the current FCF yield is about 0.38% lower.
14.13
P/B
Median3y
11.84
Median5y
10.42
2.40
FCF Yield
Median3y
2.25
Median5y
2.40
Competitors Valuation Multiple
The average P/S ratio for ANET's competitors is 6.54, providing a benchmark for relative valuation. Arista Networks Inc Corp (ANET) exhibits a P/S ratio of 16.24, which is 148.3% above the industry average. Given its robust revenue growth of 27.46%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ANET increased by 39.80% 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 22.87%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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Frequently Asked Questions
Is Arista Networks Inc (ANET) currently overvalued or undervalued?
Arista Networks Inc (ANET) is now in the Overvalued zone, suggesting that its current forward PE ratio of 41.71 is considered Overvalued compared with the five-year average of 32.89. The fair price of Arista Networks Inc (ANET) is between 80.91 to 118.65 according to relative valuation methord. Compared to the current price of 130.08 USD , Arista Networks Inc is Overvalued By 9.63% .
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 80.91 to 118.65 according to relative valuation methord.
How does ANET's valuation metrics compare to the industry average?
The average P/S ratio for ANET's competitors is 6.54, providing a benchmark for relative valuation. Arista Networks Inc Corp (ANET) exhibits a P/S ratio of 16.24, which is 148.30% above the industry average. Given its robust revenue growth of 27.46%, this premium appears sustainable.
What is the current P/B ratio for Arista Networks Inc (ANET) as of Jan 08 2026?
As of Jan 08 2026, Arista Networks Inc (ANET) has a P/B ratio of 14.13. This indicates that the market values ANET at 14.13 times its book value.
What is the current FCF Yield for Arista Networks Inc (ANET) as of Jan 08 2026?
As of Jan 08 2026, Arista Networks Inc (ANET) has a FCF Yield of 2.40%. This means that for every dollar of Arista Networks Inc’s market capitalization, the company generates 2.40 cents in free cash flow.
What is the current Forward P/E ratio for Arista Networks Inc (ANET) as of Jan 08 2026?
As of Jan 08 2026, Arista Networks Inc (ANET) has a Forward P/E ratio of 41.71. This means the market is willing to pay $41.71 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 Jan 08 2026?
As of Jan 08 2026, Arista Networks Inc (ANET) has a Forward P/S ratio of 16.24. This means the market is valuing ANET at $16.24 for every dollar of expected revenue over the next 12 months.