ANET Valuation

Arista Networks Inc

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122.090

+3.47(2.925%)1D

Overview
Forecast
Valuation
Earnings

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 46.87 is considered Overvalued compared with the five-year average of 31.29. The fair price of Arista Networks Inc (ANET) is between 65.05 to 94.17 according to relative valuation methord. Compared to the current price of 122.09 USD , Arista Networks Inc is Overvalued By 29.65%.

Relative Value

Fair Zone

65.05-94.17

Current Price：122.09

29.65%

Overvalued

46.87

Trailing

Forward

35.78

EV/EBITDA

Arista Networks Inc. (ANET) has a current EV/EBITDA of 35.78. The 5-year average EV/EBITDA is 22.57. The thresholds are as follows: Strongly Undervalued below 9.87, Undervalued between 9.87 and 16.22, Fairly Valued between 28.92 and 16.22, Overvalued between 28.92 and 35.27, and Strongly Overvalued above 35.27. The current Forward EV/EBITDA of 35.78 falls within the Strongly Overvalued range.

36.09

EV/EBIT

Arista Networks Inc. (ANET) has a current EV/EBIT of 36.09. The 5-year average EV/EBIT is 23.02. The thresholds are as follows: Strongly Undervalued below 10.43, Undervalued between 10.43 and 16.73, Fairly Valued between 29.32 and 16.73, Overvalued between 29.32 and 35.61, and Strongly Overvalued above 35.61. The current Forward EV/EBIT of 36.09 falls within the Strongly Overvalued range.

17.11

Arista Networks Inc. (ANET) has a current PS of 17.11. The 5-year average PS is 10.34. The thresholds are as follows: Strongly Undervalued below 4.01, Undervalued between 4.01 and 7.18, Fairly Valued between 13.51 and 7.18, Overvalued between 13.51 and 16.67, and Strongly Overvalued above 16.67. The current Forward PS of 17.11 falls within the Strongly Overvalued range.

37.42

P/OCF

Arista Networks Inc. (ANET) has a current P/OCF of 37.42. The 5-year average P/OCF is 29.29. The thresholds are as follows: Strongly Undervalued below 14.30, Undervalued between 14.30 and 21.80, Fairly Valued between 36.79 and 21.80, Overvalued between 36.79 and 44.29, and Strongly Overvalued above 44.29. The current Forward P/OCF of 37.42 falls within the Overvalued range.

38.20

P/FCF

Arista Networks Inc. (ANET) has a current P/FCF of 38.20. The 5-year average P/FCF is 30.96. The thresholds are as follows: Strongly Undervalued below 16.04, Undervalued between 16.04 and 23.50, Fairly Valued between 38.43 and 23.50, Overvalued between 38.43 and 45.89, and Strongly Overvalued above 45.89. The current Forward P/FCF of 38.20 falls within the Historic Trend Line -Fairly Valued range.

Arista Networks Inc (ANET) has a current Price-to-Book (P/B) ratio of 15.16. Compared to its 3-year average P/B ratio of 10.93 , the current P/B ratio is approximately 38.71% higher. Relative to its 5-year average P/B ratio of 9.63, the current P/B ratio is about 57.47% higher. Arista Networks Inc (ANET) has a Forward Free Cash Flow (FCF) yield of approximately 2.54%. Compared to its 3-year average FCF yield of 2.17%, the current FCF yield is approximately 16.85% lower. Relative to its 5-year average FCF yield of 2.62% , the current FCF yield is about -3.21% lower.

15.16

P/B

Median3y

10.93

Median5y

9.63

2.54

FCF Yield

Median3y

2.17

Median5y

2.62

Competitors Valuation Multiple

The average P/S ratio for ANET's competitors is 5.69, providing a benchmark for relative valuation. Arista Networks Inc Corp (ANET) exhibits a P/S ratio of 17.11, which is 200.94% above the industry average. Given its robust revenue growth of 27.58%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Seagate Technology Holdings PLC

Logitech International SA

2.95

5.47%

14.78B

Performance Decomposition

Market capitalization of ANET increased by 40.92% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.57B to 2.00B.

The secondary factor is the P/E Change, contributed 13.32%to the performance.

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

27.58%

1.57B → 2.00B

Revenue Growth

0.02%

40.58 → 40.59

Margin Expansion

13.32%

45.46 → 51.52

P/E Change

40.92%