Arista Networks, Inc.

NYSE:ANET Stock Report

Market Cap: US$128.0b

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 ($402) is trading above our estimate of fair value ($352.2)

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?

Other financial metrics that can be useful for relative valuation.

ANET key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue19.3x
Enterprise Value/EBITDA45.8x
PEG Ratio4.1x

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 Average43.7x
MSI Motorola Solutions
54.2x17.9%US$79.7b
CSCO Cisco Systems
21.9x5.2%US$225.1b
UI Ubiquiti
43.4xn/aUS$15.1b
JNPR Juniper Networks
55.2x31.3%US$12.9b
ANET Arista Networks
51.3x12.4%US$128.0b

Price-To-Earnings vs Peers: ANET is expensive based on its Price-To-Earnings Ratio (51.3x) compared to the peer average (43.7x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.9%
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Price-To-Earnings vs Industry: ANET is expensive based on its Price-To-Earnings Ratio (51.3x) compared to the US Communications industry average (28.4x).

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 Ratio51.3x
Fair PE Ratio31.8x

Price-To-Earnings vs Fair Ratio: ANET is expensive based on its Price-To-Earnings Ratio (51.3x) compared to the estimated Fair Price-To-Earnings Ratio (31.8x).

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 ANET forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$402.00
US$359.62
-10.5%
11.7%US$430.00US$265.00n/a21
Oct ’25US$381.85
US$359.62
-5.8%
11.7%US$430.00US$265.00n/a21
Sep ’25US$353.38
US$357.27
+1.1%
12.5%US$432.00US$265.00n/a22
Aug ’25US$338.64
US$357.98
+5.7%
12.3%US$432.00US$265.00n/a22
Jul ’25US$356.70
US$329.84
-7.5%
12.9%US$425.00US$220.00n/a22
Jun ’25US$297.65
US$316.98
+6.5%
10.2%US$389.00US$220.00n/a22
May ’25US$255.21
US$291.45
+14.2%
13.7%US$356.00US$195.00n/a25
Apr ’25US$299.75
US$294.73
-1.7%
12.3%US$356.00US$195.00n/a25
Mar ’25US$287.74
US$291.05
+1.2%
11.6%US$330.00US$195.00n/a25
Feb ’25US$262.98
US$244.61
-7.0%
17.2%US$320.00US$160.00n/a23
Jan ’25US$235.51
US$226.40
-3.9%
12.7%US$300.00US$160.00n/a23
Dec ’24US$216.64
US$218.79
+1.0%
9.5%US$248.00US$160.00n/a23
Nov ’24US$210.84
US$211.27
+0.2%
8.8%US$232.00US$160.00n/a22
Oct ’24US$183.93
US$200.18
+8.8%
10.7%US$230.00US$150.00US$381.8522
Sep ’24US$197.36
US$196.77
-0.3%
10.0%US$225.00US$150.00US$353.3822
Aug ’24US$185.61
US$191.36
+3.1%
12.0%US$225.00US$149.00US$338.6422
Jul ’24US$162.06
US$170.70
+5.3%
11.4%US$200.00US$135.00US$356.7020
Jun ’24US$166.68
US$169.95
+2.0%
11.1%US$200.00US$135.00US$297.6519
May ’24US$160.16
US$168.12
+5.0%
12.6%US$200.00US$130.00US$255.2120
Apr ’24US$167.86
US$165.47
-1.4%
13.7%US$225.00US$130.00US$299.7522
Mar ’24US$138.56
US$164.11
+18.4%
13.3%US$225.00US$130.00US$287.7422
Feb ’24US$130.52
US$156.28
+19.7%
14.4%US$212.00US$118.20US$262.9822
Jan ’24US$121.35
US$156.69
+29.1%
14.4%US$212.00US$118.20US$235.5122
Dec ’23US$139.78
US$156.28
+11.8%
13.9%US$203.00US$118.20US$216.6422
Nov ’23US$127.71
US$147.87
+15.8%
15.4%US$203.00US$115.00US$210.8422
Oct ’23US$112.89
US$146.36
+29.7%
15.7%US$189.00US$105.00US$183.9322

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

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