Arista Networks Inc

NYSE:ANET Stock Report

Market Cap: US$136.1b

Arista Networks Valuation

Is ANET 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 ANET when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ANET ($109.07) is trading above our estimate of fair value ($72.07)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ANET. This is calculated by dividing ANET's market cap by their current earnings.
What is ANET's PE Ratio?
PE Ratio51.6x
EarningsUS$2.66b
Market CapUS$136.14b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ANET vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38x
CSCO Cisco Systems
24.4x8.1%US$229.1b
MSI Motorola Solutions
49.6x17.4%US$77.3b
UI Ubiquiti
52x29.0%US$19.7b
FFIV F5
25.9x10.7%US$14.8b
ANET Arista Networks
51.6x11.9%US$136.1b

Price-To-Earnings vs Peers: ANET is expensive based on its Price-To-Earnings Ratio (51.6x) compared to the peer average (38x).

Price to Earnings Ratio vs Industry

How does ANET's PE Ratio compare vs other companies in the US Communications Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ATVK Ameritek Ventures
3.9xn/aUS$551.90k
NIHK Video River Networks
0.3xn/aUS$382.98k
No more companies available in this PE range
ANET 51.6xIndustry Avg. 24.4xNo. of Companies4PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ANET is expensive based on its Price-To-Earnings Ratio (51.6x) compared to the US Communications industry average (24.4x).

Price to Earnings Ratio vs Fair Ratio

What is ANET'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.

ANET PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio51.6x
Fair PE Ratio31.7x

Price-To-Earnings vs Fair Ratio: ANET is expensive based on its Price-To-Earnings Ratio (51.6x) compared to the estimated Fair Price-To-Earnings Ratio (31.7x).

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 ANET forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$109.07
US$108.48
-0.5%
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$98.54
US$94.25
-4.4%
15.2%US$120.00US$66.25n/a21
Oct ’25US$95.46
US$90.20
-5.5%
12.1%US$107.50US$66.25n/a21
Sep ’25US$88.35
US$89.32
+1.1%
12.5%US$108.00US$66.25n/a22
Aug ’25US$84.66
US$89.50
+5.7%
12.3%US$108.00US$66.25n/a22
Jul ’25US$89.18
US$82.46
-7.5%
12.9%US$106.25US$55.00n/a22
Jun ’25US$74.41
US$79.25
+6.5%
10.2%US$97.25US$55.00n/a22
May ’25US$63.80
US$72.86
+14.2%
13.7%US$89.00US$48.75n/a25
Apr ’25US$74.94
US$73.68
-1.7%
12.3%US$89.00US$48.75n/a25
Mar ’25US$71.94
US$72.76
+1.2%
11.6%US$82.50US$48.75n/a25
Feb ’25US$65.75
US$61.15
-7.0%
17.2%US$80.00US$40.00n/a23
Jan ’25US$58.88
US$56.60
-3.9%
12.7%US$75.00US$40.00n/a23
Dec ’24US$54.16
US$54.70
+1.0%
9.5%US$62.00US$40.00US$101.4623
Nov ’24US$52.71
US$52.82
+0.2%
8.8%US$58.00US$40.00US$98.5422
Oct ’24US$45.98
US$50.05
+8.8%
10.7%US$57.50US$37.50US$95.4622
Sep ’24US$49.34
US$49.19
-0.3%
10.0%US$56.25US$37.50US$88.3522
Aug ’24US$46.40
US$47.84
+3.1%
12.0%US$56.25US$37.25US$84.6622
Jul ’24US$40.52
US$42.68
+5.3%
11.4%US$50.00US$33.75US$89.1820
Jun ’24US$41.67
US$42.49
+2.0%
11.1%US$50.00US$33.75US$74.4119
May ’24US$40.04
US$42.03
+5.0%
12.6%US$50.00US$32.50US$63.8020
Apr ’24US$41.97
US$41.37
-1.4%
13.7%US$56.25US$32.50US$74.9422
Mar ’24US$34.64
US$41.03
+18.4%
13.3%US$56.25US$32.50US$71.9422
Feb ’24US$32.63
US$39.07
+19.7%
14.4%US$53.00US$29.55US$65.7522
Jan ’24US$30.34
US$39.17
+29.1%
14.4%US$53.00US$29.55US$58.8822
Dec ’23US$34.95
US$39.07
+11.8%
13.9%US$50.75US$29.55US$54.1622

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 Analysis2024/12/19 22:28
End of Day Share Price 2024/12/19 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 here.

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 .

Analyst Sources

Arista Networks Inc is covered by 66 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
Timothy LongBarclays