Arista Networks Inc
NYSE:ANET

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Arista Networks Inc
NYSE:ANET
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Price: 71.2 USD -0.93% Market Closed
Market Cap: 89.8B USD
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Intrinsic Value

The intrinsic value of one ANET stock under the Base Case scenario is 55.82 USD. Compared to the current market price of 71.2 USD, Arista Networks Inc is Overvalued by 22%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

ANET Intrinsic Value
55.82 USD
Overvaluation 22%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation History
Arista Networks Inc

Intrinsic Value History
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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

Backtest Example
ANET
Valuation History
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Valuation History Unavailable

Historical valuation for ANET cannot be conducted due to limitations such as insufficient data or other constraints.

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Fundamental Analysis

Company Overview
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Business Segments
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Economic Moat
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Bear Theses

Arista’s heavy revenue concentration in a few hyperscale cloud customers poses a significant risk; a sudden pullback or shift in vendor preference from one of these key accounts could cause a sharp drop in sales and operating leverage.

As competition intensifies from larger networking incumbents and newer white-box solutions, Arista may face margin pressure if it is forced to lower prices or increase R&D spending to maintain its differentiation in software-driven networking.

Arista’s reliance on data center expansion creates cyclical exposure; slower-than-expected cloud infrastructure spending or delayed upgrade cycles could stall future top-line growth, especially if macroeconomic conditions worsen.

Bull Theses

Arista’s strong foothold in high-speed data center switching, particularly among hyperscalers, positions it to benefit from ongoing growth in cloud computing and AI workloads, which depend on advanced networking infrastructure.

Its extensible EOS operating system and focus on software-driven network automation sets Arista apart, allowing the company to command premium pricing, maintain robust margins, and embed itself deeply in customers’ operations.

Arista has demonstrated a consistent track record of execution and profitable growth, backed by a loyal customer base that values the firm’s high-performance, scalable solutions, suggesting future gains in market share as cloud demand surges.

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Financials
Annual
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TTM

Balance Sheet Decomposition
Arista Networks Inc

Current Assets 11.9B
Cash & Short-Term Investments 8.3B
Receivables 1.1B
Other Current Assets 2.5B
Non-Current Assets 2.1B
PP&E 98.8m
Intangibles 330.5m
Other Non-Current Assets 1.7B
Current Liabilities 2.7B
Accounts Payable 381.1m
Accrued Liabilities 457.4m
Other Current Liabilities 1.9B
Non-Current Liabilities 1.3B
Other Non-Current Liabilities 1.3B
Efficiency

Free Cash Flow Analysis
Arista Networks Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate

Earnings Waterfall
Arista Networks Inc

Revenue
7B USD
Cost of Revenue
-2.5B USD
Gross Profit
4.5B USD
Operating Expenses
-1.5B USD
Operating Income
2.9B USD
Other Expenses
-92.6m USD
Net Income
2.9B USD
Fundamental Scores

ANET Profitability Score
Profitability Due Diligence

Arista Networks Inc's profitability score is 85/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROIC
Positive Free Cash Flow
Positive Gross Profit
Exceptional 3-Year Average ROE
85/100
Profitability
Score

Arista Networks Inc's profitability score is 85/100. The higher the profitability score, the more profitable the company is.

ANET Solvency Score
Solvency Due Diligence

Arista Networks Inc's solvency score is 79/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Short-Term Solvency
Low D/E
Long-Term Solvency
79/100
Solvency
Score

Arista Networks Inc's solvency score is 79/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

ANET Price Targets Summary
Arista Networks Inc

Wall Street analysts forecast ANET stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for ANET is 118.48 USD with a low forecast of 81.56 USD and a high forecast of 152.25 USD.

Lowest
Price Target
81.56 USD
15% Upside
Average
Price Target
118.48 USD
66% Upside
Highest
Price Target
152.25 USD
114% Upside
View Analyst Estimates
View Analyst Estimates

Dividends

Arista Networks Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for ANET is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
No dividends
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What is the Intrinsic Value of one ANET stock?

The intrinsic value of one ANET stock under the Base Case scenario is 55.82 USD.

Is ANET stock undervalued or overvalued?

Compared to the current market price of 71.2 USD, Arista Networks Inc is Overvalued by 22%.

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