Stock Analysis
Arista NetworksANET
P/E 55.19×· 5Y range 27.19–67.59×· top 13% of history
Sector: Technology · Industry: Computer Communications Equipment
AnalystsStrong Buy35 analystsP/E 55.2× sits at the 87th percentile of its 5.089664613278576-year history.
Cash covers 11871% of debt · FY 2025.
PMP Verdict
High quality, but expensive
Strengths
- Profitability100
- Financial Health100
Risks
- Valuation5
Excellent business. Weak entry price.
Market context
-4.6% today· Z 2.1σ
Bull Case
- ✓Altman Z 21.5 — safe-zone balance sheet
- ✓ROE 32.7% — efficient capital deployment
- ✓Revenue CAGR 32.2% — durable top-line growth
- ✓Interest coverage 101.2× — debt well covered
What's happening with ANET
Profile
Strong profitability, financial health, moat and growth; valuation lags behind.
How is each axis scored?
- Valuation5/100 · Weak
- P/E vs own history (87th pct)0/25
- FCF yield (2.3%)5/25
- P/S (21.1x)0/25
- EV/EBIT (46.5x)0/25
- Growth95/100 · Strong
- Revenue CAGR (32.2%)25/25
- Net income CAGR (43.0%)25/25
- EPS CAGR 5Y (43.0%)25/25
- Fwd implied growth (27.5%)20/25
- Profitability100/100 · Strong
- ROIC (209.1%)25/25
- ROE (32.7%)25/25
- Net margin (38.4%)25/25
- Operating margin (43.1%)25/25
- Financial Health100/100 · Strong
- Altman Z (21.51)25/25
- Current ratio (3.05)25/25
- Interest coverage (101.2x)25/25
- Net cash / debt (Net cash)25/25
- Quality72/100 · Moderate
- Piotroski F (6/9)15/25
- Beneish M (-2.35)20/25
- FCF conversion (127%)25/25
- Margin stability (σ 10.7%)12/25
- Moat100/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (64.0%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 15.3%)25/25
Risk Flags
- ⚠P/E 55.2× at top 13% of 5-year history
About Arista Networks
Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Show more
Its marquee product is its extensible operating system that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three-fourths of its sales from North America.
Headquarters: SANTA CLARA, CA · Employees: 5,115 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
5EP/E (TTM)54.9xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 27.2x–67.6x · 87th pct
P/FCF45.4xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield2.3%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.1%–4.6% · 56th pct
P/S (TTM)21.06xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 8.1x–25.9x · 85th pct
EV/EBIT46.5xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 46.7x–57.8x · lowest in history
EV/Sales22.0xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E43.0xD
Grade D: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio17.94xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.37C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
100A+ROIC209.1%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE32.7%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA19.5%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin38.4%A
Grade A: HighNet Income / Revenue
Operating Margin43.1%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin63.0%A
Grade A: PremiumGross Profit / Revenue
FCF Margin48.9%A
Grade A: HighFCF / Revenue
True FCF Margin44.1%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
95A+Revenue CAGR32.2%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR43.0%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)43.0%A
Grade A: HighCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth27.5%C
Grade C: MedAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-1.1%B
Grade B: FlatShare count change over 5Y
SBC / Net Income12.4%C
Grade C: MedStock-based comp/Net income. >30% = dilution risk
SBC / Revenue4.8%C
Grade C: MedTTM stock-based comp / TTM Revenue
Financial Health
100A+Altman Z-Score21.51A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio3.05xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio2.29xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage101.2xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.01xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt118.71xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
72B+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.35A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion127.5%A
Grade A: StrongFCF / Net Income
Margin Stability10.7%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue1.4%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.51xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Ullal Jayshree Filed | Ullal Jayshree | SellOpen market sale | -93241 | |
Ullal Jayshree Filed | Ullal Jayshree | SellOpen market sale | -18656 | |
Ullal Jayshree Filed | Ullal Jayshree | SellOpen market sale | -19990 | |
Ullal Jayshree Filed | Ullal Jayshree | SellOpen market sale | -4000 | |
Ullal Jayshree Filed | Ullal Jayshree | SellOpen market sale | -69272 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Ullal Jayshree Filed | Ullal Jayshree | SellOpen market sale | -13860 | |
Ullal Jayshree Filed | Ullal Jayshree | SellOpen market sale | -3902 | |
Ullal Jayshree Filed | Ullal Jayshree | SellOpen market sale | -259045 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
100A+ROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)64.0%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor15.3%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$3.21
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$10.60
Cash & short-term investments per share (Finnhub)
Book Value / Share$11.75
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$90.50M
Total debt obligations (short + long term)
Cash & Equiv.$10.74B
Cash and short-term investments
Net Debt$-10.65BA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$12.37B
Shareholders' equity (book value)
Asset / Liability2.75xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$221.98B
Current Market Capitalization
Beta1.61C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Arista Networks (ANET)
ANET is down 4.63% at the last close. Piotroski F-Score of 6/9 indicates mixed fundamentals for Arista Networks. Altman Z-Score of 21.51 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.35 suggests a low likelihood of earnings manipulation. Revenue has compounded at roughly 32% annually, with net income growing about 43% per year — a strong growth profile.
- Arista Networks converts about 49% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- At a valuation score of 5/100, ANET trades at a premium to its historical multiples (P/E 54.9).
- Return on equity of 32.7% is well above the market average.
See how ANET ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all ANET moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 16 | After-hours | 176.00 | -5.16% | -2.12 |
| Oct 15 | Regular | 185.48 | -5.09% | -2.49 |
| Oct 15 | After-hours | 186.40 | -4.62% | -2.25 |
| Oct 14 | Regular | 195.13 | -4.59% | -2.73 |
| Oct 14 | After-hours | 192.16 | -6.04% | -3.58 |
Frequently Asked Questions about ANET
What is the current Arista Networks (ANET) stock price?
ANET is trading at $176.98 at the last market close, down 4.63% on the session. PreMarketPrice tracks ANET pre-market, intraday and after-hours prices.
Is ANET stock a buy right now?
PreMarketPrice's quantitative model rates Arista Networks's financial health at 100/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is ANET stock overvalued?
Arista Networks trades at a trailing P/E of 54.9 and our valuation score rates it 5/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Arista Networks report earnings?
No confirmed earnings date is currently scheduled for ANET. The Earnings section lists recent reports and updates as dates are announced.
What sector does Arista Networks operate in?
Arista Networks operates in the Technology sector, within the Computer Communications Equipment industry. The Related Stocks section lists sector peers for comparison.
What does Arista Networks do?
Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers.
About Arista Networks (ANET) Stock
Arista Networks (ANET) is a US-listed stock operating in the Technology sector, specifically the Computer Communications Equipment industry. As of the latest update, Arista Networks is trading at $176.98, down 4.63% on the day with a market capitalization of $222.0 billion. The financial health score for ANET is 100/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for ANET stock.
ANET Stock Analysis & Key Metrics
On PreMarketPrice, you can track Arista Networks (ANET) across multiple dimensions:
- Pre-market price & movement: Real-time ANET stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for ANET with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Arista Networks across multiple reporting periods.
- Financial health score: A composite score of 100/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for ANET.
- Sector peers: Compare ANET against 6 other technology stocks on key financial metrics.
Is ANET a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Arista Networks (ANET) as an investment. The financial health score of 100/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Arista Networks (ANET) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.