Arista Networks, Inc. (ANET) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-44.7%

$91.58

vs $165.57 price

Levered DCF

$72.29

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

16.82

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	46.96×	48.69×	34.84×	27.58×	52.09×	34.92×	18.16×	48.03×
P/B	13.32×	13.89×	10.09×	7.61×	11.08×	6.65×	5.36×	7.35×
P/S	18.3×	19.83×	12.43×	8.49×	14.95×	9.53×	6.44×	7.32×
EV / EBITDA	37.68×	40.91×	28.45×	22.24×	44.33×	28.93×	17.28×	47.43×
Gross margin	64.1%	64.1%	61.9%	61.1%	63.8%	63.9%	64.1%	63.8%
Operating margin	42.8%	42.0%	38.5%	34.9%	31.4%	30.2%	33.4%	12.7%
Net margin	39.0%	40.7%	35.6%	30.9%	28.5%	27.4%	35.7%	15.3%
Current ratio	3.05×	4.36×	4.38×	4.29×	4.34×	4.99×	5.81×	4.48×
Debt / equity	0×	0×	0×	0.01×	0.01×	0.02×	0.03×	0.02×
Interest coverage	0×	0×	0×	0×	0×	0×	0×	101.2×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	28.4%	28.5%	28.9%	27.7%	21.1%	19.1%	29.7%	15.3%
Return on invested capital	22.6%	22.7%	24.2%	23.8%	18.1%	15.1%	22.4%	11.0%
Return on assets	18.1%	20.3%	21.0%	20.0%	14.7%	13.4%	20.5%	10.6%
Free cash flow yield	2.6%	2.6%	2.7%	1.2%	2.2%	3.3%	6.1%	3.0%
Earnings yield	2.1%	2.1%	2.9%	3.6%	1.9%	2.9%	5.5%	2.1%
Enterprise value	$162.9B	$136.1B	$70.9B	$36.6B	$43.5B	$21.3B	$14.5B	$15.1B
Net debt / EBITDA	-0.45×	-0.83×	-0.78×	-0.38×	-0.58×	-1.12×	-1.23×	-1.93×
Cash conversion cycle (days)	256	271	312	303	217	212	123	136