Arista Networks Valuation
| ANET Stock | USD 406.48 1.51 0.37% |
At this time, the firm appears to be overvalued. Arista Networks shows a prevailing Real Value of $292.79 per share. The current price of the firm is $406.48. Our model approximates the value of Arista Networks from analyzing the firm fundamentals such as Current Valuation of 123.61 B, return on equity of 0.34, and Profit Margin of 0.40 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Arista Networks' valuation include:
Price Book 13.8458 | Enterprise Value 123.6 B | Enterprise Value Ebitda 43.4338 | Price Sales 19.3579 | Forward PE 41.3223 |
Overvalued
Today
Please note that Arista Networks' price fluctuation is very steady at this time. Calculation of the real value of Arista Networks is based on 3 months time horizon. Increasing Arista Networks' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Arista Networks' intrinsic value may or may not be the same as its current market price of 406.48, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 406.48 | Real 292.79 | Target 200.56 | Hype 403.84 | Naive 394.97 |
The intrinsic value of Arista Networks' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Arista Networks' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Arista Networks helps investors to forecast how Arista stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Arista Networks more accurately as focusing exclusively on Arista Networks' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Arista Networks' intrinsic value based on its ongoing forecasts of Arista Networks' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Arista Networks' closest peers.
Arista Networks Cash |
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Arista Valuation Trend
Arista Networks' real value is important for investors to make better decisions and a more accurate overall view of Arista Networks' financial worth over time. Using both Arista Networks' enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Arista Revenue by Product
Arista Networks Total Value Analysis
Arista Networks is presently forecasted to have valuation of 123.61 B with market capitalization of 128.02 B, debt of 65.52 M, and cash on hands of 2.9 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Arista Networks fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
123.61 B | 128.02 B | 65.52 M | 2.9 B |
Arista Networks Investor Information
About 18.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 2.36. Arista Networks recorded earning per share (EPS) of 8.33. The entity had not issued any dividends in recent years. The firm had 4:1 split on the 18th of November 2021. Based on the key indicators related to Arista Networks' liquidity, profitability, solvency, and operating efficiency, Arista Networks is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.21 | 0.3852 |
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| Total Cash From Operating Activities | 2.1 B | 2 B |
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| Operating Income | 2.4 B | 2.3 B |
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Arista Networks Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Arista Networks has an asset utilization ratio of 58.92 percent. This implies that the Company is making $0.59 for each dollar of assets. An increasing asset utilization means that Arista Networks is more efficient with each dollar of assets it utilizes for everyday operations.Arista Networks Ownership Allocation
Arista Networks holds a total of 314.94 Million outstanding shares. The majority of Arista Networks outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Arista Networks to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Arista Networks. Please pay attention to any change in the institutional holdings of Arista Networks as this could imply that something significant has changed or is about to change at the company. On September 24, 2024, Representative Greg Landsman of US Congress acquired $15k to $50k worth of Arista Networks's common stock.Arista Networks Profitability Analysis
The company reported the previous year's revenue of 5.86 B. Net Income was 2.09 B with profit before overhead, payroll, taxes, and interest of 2.68 B.About Arista Networks Valuation
The stock valuation mechanism determines Arista Networks' current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Arista Networks based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Arista Networks. We calculate exposure to Arista Networks's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Arista Networks's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.6 B | 3.8 B | |
| Pretax Profit Margin | 0.41 | 0.21 | |
| Operating Profit Margin | 0.39 | 0.21 | |
| Net Profit Margin | 0.36 | 0.37 | |
| Gross Profit Margin | 0.62 | 0.72 |
Arista Networks Quarterly Retained Earnings |
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Arista Networks Growth Indicators
Investing in growth stocks can be very risky. If the company such as Arista Networks does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 317.1 M | |
| Quarterly Earnings Growth Y O Y | 0.355 | |
| Forward Price Earnings | 41.3223 |
Arista Networks Current Valuation Indicators
Arista Networks' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Arista Networks' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Arista Networks, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Arista Networks' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Arista Networks' worth.Additional Tools for Arista Stock Analysis
When running Arista Networks' price analysis, check to measure Arista Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arista Networks is operating at the current time. Most of Arista Networks' value examination focuses on studying past and present price action to predict the probability of Arista Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arista Networks' price. Additionally, you may evaluate how the addition of Arista Networks to your portfolios can decrease your overall portfolio volatility.