Arista Networks Inc
Exchange: NYSESector: TechnologyIndustry: Computer Hardware
Arista Networks is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. Its award-winning platforms deliver availability, agility, automation, analytics, and security through an advanced network operating stack.
Did you know?
Trading 12% above its estimated fair value of $151.90.
Current Price
$172.70
-0.01%GoodMoat Value
$151.90
12.0% overvaluedProfile
Valuation (TTM)
Market Cap$217.48B
P/E61.93
EV$160.37B
P/B17.58
Shares Out1.26B
P/Sales24.15
Revenue$9.01B
EV/EBITDA47.83
Arista Networks Inc (ANET) Stock Analysis
GoodMoat Analysis
Arista Networks is a high-quality networking hardware and software provider with a strong competitive position, but its valuation appears full. The business demonstrates a durable moat and excellent financial quality, yet the current price offers a minimal margin of safety, placing it in the 'with caution' zone for a value investor.
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Arista Networks provides high-performance cloud networking solutions, primarily Ethernet switches and software for data centers and campus environments. Its moat is anchored in several durable advantages, including high switching costs from mission-critical, deeply integrated software (EOS), strategic partnerships with hyperscalers like Microsoft and Meta, and a founder-led culture with significant insider ownership. Applying the framework, it would likely score well in Moat Identification, meeting criteria for Switching Costs, Strategic Partnerships, and Founder-Led Execution, suggesting a score above the 5+ threshold for a durable advantage. Its Quality Indicators are strong, with a 42.8% operating margin, 28.9% ROE (exceeding the 15-20% benchmark), and 28.9% YoY revenue growth. The company passes the Moat & Quality Gate. However, valuation is the primary constraint. With a P/E of 48.4 and a GoodMoat Target price of $138.34, the stock trades very close to its estimated fair value, implying a minimal margin of safety. This places it in the 'Marginal' (10-20%) or lower band of the Valuation Assessment. Following the Decision Framework, a stock with high quality but a full valuation falls into the 'WITH CAUTION' category, as it requires perfect future execution and offers little room for error. For a value investor, it is a company worth understanding but not one trading at an obvious discount. Analysis based on data as of 2024-05-15.
Market Cap$217.48B
Current Price$172.70
P/E Ratio61.93
Forward P/E—
PEG Ratio3.30
EPS$2.75
Book Value$9.82
P/B Ratio17.58
ANET Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 28.4% FCF growth (CAGR)
Cash vs Debt
Net Cash: 2.0B
Revenue
2.4B
FY19
2.3B
FY20
2.9B
FY21
4.4B
FY22
5.9B
FY23
7.0B
FY24
9.0B
FY25
Net Income
859M
FY19
635M
FY20
841M
FY21
1.4B
FY22
2.1B
FY23
2.9B
FY24
3.5B
FY25
ANET 52-Week Range
$86.25
$177.73
50-Day MA: $142.80200-Day MA: $137.57
Did you know?
Earnings per share grew at a 26.4% CAGR.
Arista Networks Inc (ANET) Financial Summary
Arista Networks Inc (ANET) is a Technology company in the Computer Hardware industry, listed on NYSE. The stock currently trades at $172.70 with a market capitalization of $217.48B.
Key valuation metrics include a P/E ratio of 61.93, price-to-book ratio of 17.58, and EPS of $2.75. The company reports a profit margin of 39.0% and return on equity of 28.4%.
ANET Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $217.48B |
| P/E Ratio | 61.93 |
| EPS | $2.75 |
| P/B Ratio | 17.58 |
| P/S Ratio | 24.15 |
| EV/EBITDA | 47.83 |
| Profit Margin | 39.0% |
| Return on Equity | 28.4% |
ANET Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.41B | $859.44M |
| FY20 | $2.32B | $634.56M |
| FY21 | $2.95B | $840.85M |
| FY22 | $4.38B | $1.35B |
| FY23 | $5.86B | $2.09B |
| FY24 | $7.00B | $2.85B |
| FY25 | $9.01B | $3.51B |
Arista Networks Inc (ANET) Valuation
Based on GoodMoat's DCF model, Arista Networks Inc has a fair value estimate of $151.90. At the current price of $172.70, the stock appears 13.7% overvalued relative to our intrinsic value estimate.
ANET Quality Indicators
Arista Networks Inc maintains a profit margin of 39.0% and an operating margin of 42.8%. Return on equity stands at 28.4%. The current ratio is 3.05.
About Arista Networks Inc
Arista Networks is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. Its award-winning platforms deliver availability, agility, automation, analytics, and security through an advanced network operating stack.
ANET Free Cash Flow
Arista Networks Inc generated $4.25B in trailing twelve-month free cash flow, representing an FCF yield of 1.96%. This low FCF yield may reflect heavy reinvestment or growth spending.
ANET Shares Outstanding
Arista Networks Inc has 1.26 billion shares outstanding at a share price of $172.70, giving it a market capitalization of $217.48B.
ANET Recent Insider Trades
Recent insider transactions at Arista Networks Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Ullal Jayshree (CEO and Chairperson) | SELL | 52,838 | $9.37M |
| Ullal Jayshree (CEO and Chairperson) | SELL | 4,519 | $757566.52 |
| Ullal Jayshree (CEO and Chairperson) | SELL | 45,920 | $7.68M |