ANET

Arista Networks, Inc.

Fundamental data last updated:August 18, 2026

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company profile

SECTOR

Technology

industry

Computer Hardware

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms. It also provides post contract customer support services, such as technical support, hardware repair and parts replacement beyond standard warranty, bug fix, patch, and upgrade services. The company serves a range of industries comprising internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.

 


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VALUATION

P/E

53.42

Market Cap ($M USD)

$199.00B

Forward P/E

22.30

PEG

0.16

PRICE TO SALES

20.49

PRICE TO BOOK

14.74

EV / EBITDA

46.56

5-Year Average P/E

Free Cash Flow Yield

2.65%

DCF Value

$81.29

Graham Number

$26.72

Price to FCF

37.70

EV to FCF

37.17

Earnings Yield

1.87%

FCF Yield

2.65%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.96

Next Year EPS Growth Estimate

$7.09

Next Year Revenue Growth Estimate

$21.53B

Return on Equity (ROE)

30.58%

FREE CASH FLOW

Operating Margin

42.79%

Debt-to-Equity

0.00

Piotroski F-Score

5

Altman Z-Score

17.04

Return on Invested Capital (ROIC)

27.52%

Current Ratio

2.83

Quick Ratio

2.47

Net Debt to EBITDA

-0.66

Interest Coverage

0.00

Gross Profit margin

63.54%

FCF PER SHARE

$4.20

REVENUE PER SHARE

$7.72

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Gainseekers Quantitative Analysis

Summary

The market seems to be pricing Arista Networks with a hefty premium, as evidenced by its Price/Earnings ratio of 53.15, which towers over its DCF Value and Graham Number. However, the Forward P/E of 22.19 suggests expectations of robust earnings growth, aligning with a staggering Sales Growth forecast. The Altman Z-score of 16.67 indicates a fortress-like financial stability, while an Earnings Yield of 1.88% suggests limited immediate income potential. Despite the high valuation, the company’s financial health and growth prospects remain compelling.

AI Exposure / Tech Reliance

Positioned in the Computer Hardware industry, Arista Networks is well-poised to capitalize on AI and tech advancements. Its robust infrastructure supports scalable, high-performance networking solutions, crucial for AI-driven data demands. This adaptability ensures resilience in a rapidly evolving tech landscape.

The Bull Case

For the discerning GARP investor, Arista Networks offers a compelling narrative of capital efficiency and growth. With a Return on Equity of 30.58% and a ROIC of 27.52%, the company demonstrates exceptional management quality and pricing power. The Free Cash Flow Yield, though modest at 2.67%, is supported by a strong Operating Margin of 42.79%, indicating efficient cash generation. A Piotroski F-Score of 5 further underscores its solid financial footing, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, Arista Networks faces significant valuation challenges. The Price/Sales ratio of 20.39 and Price/Book of 14.66 signal a stock priced for perfection, leaving little room for error. The EV to EBITDA multiple of 46.32 suggests the market may be overly optimistic about future earnings. Additionally, with the stock trading just 14.35% below its 52-week high, it appears technically overextended, posing a risk for potential investors seeking value.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$183.30

Institutional Ownership %

1-Year Beta

1.67

Insider Buying % (6 Mo)

Distance to 52-Week High

13.77%

Distance to 52-Week Low

46.94%

EARNINGS SURPRISE %

7.67%

50-DAY SMA

$148.38

200-DAY SMA

$140.06

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.