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ANET

S&P 500
Strong · 80/100

Arista Networks

Information Technology
Communications Equipment

$174.56

2.9%

Updated Today 6:01 PM ET

Price — Past Year

▲ Up 88.0% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$213.65B

P/E

58.01x

Forward P/E (est.)

46.97x

ROE

30.6%

Revenue Growth

30.6%

EPS Growth

23.5%

Profit Margin

38.3%

FCF Yield

3.7%

Debt / Equity

0x

ROIC

23.0%

Interest Coverage

Current Ratio

2.83x

Dividend Yield

Implied Growth (rev. DCF)

6.9%

Rating Score

80/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ANET's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ANET trades near $174.56, above its 50-day average ($158.53) and 200-day average ($142.17). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 57 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. ANET's is $8.96 (~5.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month ANET found buyers near $139.13 (support) and sellers near $177.48 (resistance); its 52-week range is $85.58–$179.80. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.3× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Arista Networks (ANET) is a mega-cap company in the Communications Equipment industry, part of the Information Technology sector of the S&P 500, with a market value around $213.65B.

In its latest reported year it generated about $9.01B in revenue and $3.51B in net profit.

Our model rates ANET Strong (80/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

32.2%

Revenue moved from $2.95B in 2021 to $9.01B in 2025, a 32.2% compound annual growth rate. The most recent year grew a strong 30.6% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research

Gross Margin

64.1%

Operating Margin

42.8%

Net Margin

39.0%

ROE

30.6%

Arista Networks keeps about 38.3% of each sales dollar as net profit, with a 64.1% gross margin and 42.8% operating margin. Return on equity is 30.6% and return on invested capital about 23.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

0x

Leverage: debt-to-equity is 0.0x, with a current ratio of 2.8x. That is a conservative balance sheet — a cushion in downturns.

Cash Flow Analysis
Research

Operating CF

$4.37B

Free Cash Flow

$4.25B

FCF Margin

47.2%

In the latest year Arista Networks produced about $4.37B of operating cash flow and $4.25B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.7% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

58.01x

P/S

23.73x

P/B

13.47x

EV / EBITDA

53.14x

ANET trades at 58.0x trailing earnings (about 47.0x on estimated forward earnings), 23.7x sales, and 13.5x book value. Reverse-engineering today's price implies the market expects roughly 6.9% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
58.0xExpensive
Forward P/E
47.0xExpensive
P/S ratio
23.7xExpensive
Revenue growth
30.6%Strong
EPS growth
23.5%Strong
Gross margin
64.1%Strong
Net margin
38.3%Strong
ROE
30.6%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How ANET stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (72 S&P 500 companies), ANET ranks #6 of 72 by our overall rating. It trades at a premium versus the sector on earnings (58x P/E vs. 35.6x median) with a higher return on equity (30.6% vs. 25.6%) and faster revenue growth (30.6% vs. 17.4%).

P/E vs sector

58x

median 35.6x

ROE vs sector

30.6%

median 25.6%

Growth vs sector

30.6%

median 17.4%

Sector rank

#6

of 72 by rating

CompanyP/ERev Gr.Rating
ANETThis stock58x30.6%Strong· 80
CSCO39.6x9.2%Favorable· 62
LITE151x69.0%Neutral· 43
MSI31.2x8.3%Neutral· 48
CIEN139.8x30.6%Neutral· 52
FFIV30.7x9.7%Favorable· 62
ADI65.2x29.8%Favorable· 65
APH45x54.4%Favorable· 66
Information Technology median35.6x17.4%61/100

Valuation vs. quality map

sector medianCSCOLITEMSICIENFFIVADIAPHANETP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$376.63$624.12

vs. $174.56 today · expected CAGR 17%29%

Metric20262027202820292030
Revenue$11.80B$15.45B$20.25B$26.52B$34.74B
Net income$4.60B$6.03B$7.90B$10.34B$13.55B
EPS$3.65$4.79$6.27$8.21$10.76
Share price (low)$127.89$167.53$219.47$287.50$376.63
Share price (high)$211.93$277.62$363.69$476.43$624.12
CAGR (low–high)-27% / 21%-2% / 26%8% / 28%13% / 29%17% / 29%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for ANET:

  • Revenue is growing 30.6% a year, a sign of real demand.
  • High net margins (38.3%) point to pricing power or efficiency.
  • Strong return on equity (30.6%) shows capital is put to work well.
  • A conservative balance sheet (debt/equity 0.0x) lowers risk.
  • Our model's overall read is Strong (80/100).
Bear Case

The case against ANET:

  • A rich 58.0x earnings multiple prices in a lot of growth.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Valuation risk — at 58.0x earnings, disappointing results could compress the multiple.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Arista Networks is a mega-cap information technology business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 58.0x earnings, which our model scores Strong (80/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.