Breakdown ANET Institutional Favorite Earnings Preview
NYQ Β· Technology Β· Computer Hardware
$187.81
-11.78 (-5.90%)
ANET Interactive Price Chart & Trading Signals
ANET Stock Snapshot β Valuation, Risk & Technical Signals
ANET Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$236.87B
P/E Ratio
59.43
Forward P/E
36.40
PEG Ratio
1.49
P/B Ratio
16.01
EPS
$3.16
Dividend Yield
β
52W Range
$114.52 β $214.89
Beta
1.62
Volume
5.7M
ROE
31.5%
Profit Margin
38.4%
Revenue Growth
37.7%
Gross Margin
63.0%
EV/EBITDA
48.18
Analyst Target
$241.04
The trailing price-to-earnings ratio stands at 59.4x. Forward P/E of 36.4x implies earnings expansion expected. Price-to-book is 16.01x. EV/EBITDA sits at 48.18x. Market capitalization is $236.87B. Revenue is growing at 37.7% on a trailing basis. Earnings are expanding at 35.7%. Profit margins are 38.4%. Return on equity is 31.5%. Beta of 1.62 indicates elevated market sensitivity.
Analyst Consensus
Recommendation
Strong Buy
Low Target
$185.00
Mean Target
$241.04
High Target
$289.00
Based on 28 analysts
About ANET
Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for AI, data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications. The company offers data center, cloud and AI networking, cognitive adjacencies, and cognitive network software and services. It also provides post contract customer support services, such as technical support, hardware repair and replacement parts beyond standard warranty, bug fixes, patches, and upgrade services. The company serves a range of industries comprising internet companies, cloud service providers, financial services organizations, government agencies, media and entertainment, healthcare, oil and gas, education, manufacturing, industrial, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. Arista Networks, Inc. was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. The company was incorporated in 2004 and is headquartered in Santa Clara, California.
ANET Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
Growth-oriented investorsWatch out for
Premium valuation, High volatilityData confidence
HighArista Networks, Inc. (ANET) trades above our multi-model fair value estimate of $47.00 by approximately 75.0%. Trailing P/E: 59.4x. Profitability signals include profit margin of 38.4% and return on equity of 31.5%. Recent growth metrics show revenue growth of 37.7% and earnings growth of 35.7%. Risk profile: elevated market beta of 1.62. Consensus: strong_buy.
ANET Deep Dive Analysis
Valuation
Overvalued
P/E 59.4x
Price is above what fundamentals suggest.
Growth
Expanding
Rev 37.7%
Revenue is outpacing the market.
Risk
Elevated
Beta 1.62
Expect bigger swings than the market.
Valuation Snapshot
Arista Networks, Inc. (ANET) trades above our multi-model fair value estimate of $47.00 by approximately 75.0%. The trailing price-to-earnings ratio stands at 59.4x. Forward P/E of 36.4x suggests earnings compression ahead. Price-to-sales is 22.5x. Price-to-book is 16.0x. EV/EBITDA sits at 48.2x. Market capitalization is $236.87B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 37.7% on a trailing basis. Earnings are expanding at 35.7%. Profit margins are 38.4%. Return on equity is 31.5%. Return on assets is 14.1%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 1.62 indicates elevated market sensitivity.
Why it matters: A riskier stock can fall more in a downturn. Make sure your portfolio can handle the volatility.
Analyst Context
Analyst consensus target of $241.04 implies 28.3% upside. Target range spans $185.00 to $289.00. 28 analysts cover the stock. Consensus recommendation: strong_buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
Premium valuation is supported by above-average growth, potentially fitting growth-oriented strategies.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, market cap: Yahoo Finance (delayed ~5 min)
- P/E, EPS, revenue, debt: Yahoo Finance fundamentals
- Analyst targets: Yahoo Finance consensus (may lag)
- Insider trades: SEC EDGAR Form 4 filings
QuantSoar Model (Derived)
- Fair Value: 7-model consensus (DCF, Graham, P/E, P/S, DDM, EV/EBITDA, Div Yield) β trimmed inverse-variance weighted
- Margin of Safety = (Fair Value β Live Price) / Live Price Γ 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation(Β±25) + Whale(Β±10) + Macro(Β±10) + Technical(Β±10). Analyst consensus shown separately.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
ANET Overvalued
Arista Networks, Inc. (ANET) trades above our multi-model fair value estimate of $47.00 by approximately 75.0%.
Frequently Asked Questions
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About the Author
Phasakorn Traklang (Peach) β Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: QuantSoar is for informational purposes only. We do not provide personalized investment advice. Always conduct your own research or consult a financial advisor. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.