Arista Networks Inc

DB:1170 Stock Report

Market Cap: €78.4b

Arista Networks Valuation

Is 1170 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1170 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€76.80
Fair Value
13.0% undervalued intrinsic discount
22
Number of Analysts

Below Fair Value: 1170 (€66.78) is trading below our estimate of fair value (€76.8)

Significantly Below Fair Value: 1170 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1170?

Key metric: As 1170 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1170. This is calculated by dividing 1170's market cap by their current earnings.
What is 1170's PE Ratio?
PE Ratio33.3x
EarningsUS$2.85b
Market CapUS$89.24b

Price to Earnings Ratio vs Peers

How does 1170's PE Ratio compare to its peers?

The above table shows the PE ratio for 1170 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.5x
FEW Funkwerk
12.4xn/a€199.9m
MSI Motorola Solutions
45.3x12.9%US$70.8b
CEK CeoTronics
39.8x19.7%€118.5m
CSCO Cisco Systems
24.4x10.7%US$221.3b
1170 Arista Networks
33.3x13.3%€89.2b

Price-To-Earnings vs Peers: 1170 is expensive based on its Price-To-Earnings Ratio (33.3x) compared to the peer average (30.5x).

Price to Earnings Ratio vs Industry

How does 1170's PE Ratio compare vs other companies in the European Communications Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1170 33.3xIndustry Avg. 30.1xNo. of Companies6PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1170 is expensive based on its Price-To-Earnings Ratio (33.3x) compared to the European Communications industry average (31x).

Price to Earnings Ratio vs Fair Ratio

What is 1170's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1170 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.3x
Fair PE Ratio18.8x

Price-To-Earnings vs Fair Ratio: 1170 is expensive based on its Price-To-Earnings Ratio (33.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1170 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€66.78
€94.09
+40.9%
21.1%€128.04€48.57n/a22
Apr ’26€71.61
€106.38
+48.6%
15.0%€132.78€73.94n/a23
Mar ’26€87.90
€113.01
+28.6%
17.1%€138.61€73.17n/a23
Feb ’26€112.64
€107.22
-4.8%
16.4%€138.20€71.48n/a24
Jan ’26€107.06
€103.44
-3.4%
13.9%€119.19€71.51n/a23
Dec ’25€96.30
€101.67
+5.6%
13.7%€118.13€70.88n/a23
Nov ’25€89.45
€86.78
-3.0%
15.2%€110.50€61.00n/a21
Oct ’25€87.38
€81.49
-6.7%
12.1%€97.12€59.85n/a21
Sep ’25€78.38
€81.81
+4.4%
12.5%€98.92€60.68n/a22
Aug ’25€78.53
€82.65
+5.3%
12.3%€99.74€61.18n/a22
Jul ’25€82.66
€77.05
-6.8%
12.9%€99.28€51.39n/a22
Jun ’25€67.44
€72.96
+8.2%
10.2%€89.54€50.64n/a22
May ’25€61.74
€68.40
+10.8%
13.7%€83.54€45.76n/a25
Apr ’25€66.25
€67.87
+2.4%
12.3%€81.98€44.90€71.6125
Mar ’25€66.18
€67.24
+1.6%
11.6%€76.24€45.05€87.9025
Feb ’25€60.30
€56.42
-6.4%
17.2%€73.81€36.90€112.6423
Jan ’25€53.90
€51.56
-4.3%
12.7%€68.33€36.44€107.0623
Dec ’24€50.23
€49.92
-0.6%
9.5%€56.58€36.50€96.3023
Nov ’24€49.09
€49.91
+1.7%
8.8%€54.80€37.80€89.4522
Oct ’24€43.75
€47.03
+7.5%
10.7%€54.03€35.24€87.3822
Sep ’24€45.93
€45.67
-0.6%
10.0%€52.22€34.81€78.3822
Aug ’24€43.09
€43.56
+1.1%
12.0%€51.22€33.92€78.5322
Jul ’24€37.15
€39.11
+5.3%
11.4%€45.82€30.93€82.6620
Jun ’24€38.64
€39.75
+2.9%
11.1%€46.79€31.58€67.4419
May ’24€36.14
€38.31
+6.0%
12.6%€45.58€29.62€61.7420
Apr ’24€38.50
€38.41
-0.2%
13.7%€52.22€30.17€66.2522
AnalystConsensusTarget
Consensus Narrative from 22 Analysts
€94.51
Fair Value
29.3% undervalued intrinsic discount
22
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/04/24 09:15
End of Day Share Price 2025/04/24 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Arista Networks Inc is covered by 64 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James KelleherArgus Research Company
Ishan MajumdarBaptista Research
Benjamin ReitzesBarclays