Arista Networks Inc

LSE:0HHR Stock Report

Market Cap: US$145.2b

Arista Networks Valuation

Is 0HHR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 0HHR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$73.81
Fair Value
61.0% overvalued intrinsic discount
24
Number of Analysts

Below Fair Value: 0HHR ($118.83) is trading above our estimate of fair value ($73.81)

Significantly Below Fair Value: 0HHR is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HHR?

Key metric: As 0HHR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HHR. This is calculated by dividing 0HHR's market cap by their current earnings.
What is 0HHR's PE Ratio?
PE Ratio56x
EarningsUS$2.66b
Market CapUS$145.21b

Price to Earnings Ratio vs Peers

How does 0HHR's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HHR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average52.1x
SPT Spirent Communications
99.8x36.2%UK£1.1b
FTC Filtronic
19.5x-34.7%UK£203.1m
MSI Motorola Solutions
51.3x22.8%US$80.6b
HLMA Halma
37.7x8.4%UK£10.8b
0HHR Arista Networks
56x12.0%US$145.2b

Price-To-Earnings vs Peers: 0HHR is expensive based on its Price-To-Earnings Ratio (56x) compared to the peer average (52.1x).

Price to Earnings Ratio vs Industry

How does 0HHR's PE Ratio compare vs other companies in the European Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0HHR 56.0xIndustry Avg. 22.1xNo. of Companies7PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HHR is expensive based on its Price-To-Earnings Ratio (56x) compared to the European Communications industry average (19.6x).

Price to Earnings Ratio vs Fair Ratio

What is 0HHR'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.

0HHR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio56x
Fair PE Ratio50.1x

Price-To-Earnings vs Fair Ratio: 0HHR is expensive based on its Price-To-Earnings Ratio (56x) compared to the estimated Fair Price-To-Earnings Ratio (50.1x).

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 0HHR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$118.60
US$112.50
-5.1%
16.4%US$145.00US$75.00n/a24
Feb ’26US$116.62
US$112.50
-3.5%
16.4%US$145.00US$75.00n/a24
Jan ’26US$110.62
US$108.48
-1.9%
13.9%US$125.00US$75.00n/a23
Dec ’25US$101.46
US$107.58
+6.0%
13.7%US$125.00US$75.00n/a23
Nov ’25US$98.33
US$94.25
-4.2%
15.2%US$120.00US$66.25n/a21
Oct ’25US$96.17
US$90.20
-6.2%
12.1%US$107.50US$66.25n/a21
Sep ’25US$87.30
US$89.32
+2.3%
12.5%US$108.00US$66.25n/a22
Aug ’25US$83.92
US$89.50
+6.6%
12.3%US$108.00US$66.25n/a22
Jul ’25US$89.04
US$82.46
-7.4%
12.9%US$106.25US$55.00n/a22
Jun ’25US$73.88
US$79.25
+7.3%
10.2%US$97.25US$55.00n/a22
May ’25US$63.79
US$72.86
+14.2%
13.7%US$89.00US$48.75n/a25
Apr ’25US$72.53
US$73.68
+1.6%
12.3%US$89.00US$48.75n/a25
Mar ’25US$71.98
US$72.76
+1.1%
11.6%US$82.50US$48.75n/a25
Feb ’25US$65.72
US$61.15
-6.9%
17.2%US$80.00US$40.00US$116.6223
Jan ’25US$58.99
US$56.60
-4.1%
12.7%US$75.00US$40.00US$110.6223
Dec ’24US$54.01
US$54.70
+1.3%
9.5%US$62.00US$40.00US$101.4623
Nov ’24US$52.83
US$52.82
-0.03%
8.8%US$58.00US$40.00US$98.3322
Oct ’24US$45.86
US$50.05
+9.1%
10.7%US$57.50US$37.50US$96.1722
Sep ’24US$49.11
US$49.19
+0.2%
10.0%US$56.25US$37.50US$87.3022
Aug ’24US$46.12
US$47.84
+3.7%
12.0%US$56.25US$37.25US$83.9222
Jul ’24US$41.03
US$42.68
+4.0%
11.4%US$50.00US$33.75US$89.0420
Jun ’24US$41.62
US$42.49
+2.1%
11.1%US$50.00US$33.75US$73.8819
May ’24US$39.78
US$42.03
+5.7%
12.6%US$50.00US$32.50US$63.7920
Apr ’24US$41.23
US$41.37
+0.3%
13.7%US$56.25US$32.50US$72.5322
Mar ’24US$34.60
US$41.03
+18.6%
13.3%US$56.25US$32.50US$71.9822
Feb ’24US$31.79
US$39.07
+22.9%
14.4%US$53.00US$29.55US$65.7222
Analyst Price Target
Consensus Narrative from 24 Analysts
US$112.84
Fair Value
5.3% overvalued intrinsic discount
24
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 02:07
End of Day Share Price 2025/02/07 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 65 analysts. 25 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