Arista Networks, Inc.(ANET) - Stock detail

Arista Networks, Inc.

US
ANET
Arista Networks Inc(Listing date: 06/06/2014)

Arista Networks, Inc. was incorporated in the State of Delaware in October 2004. The company is an industry leader in networking for data-driven, client-to-cloud large-scale data center, campus, and routing environments. Its platform delivers availability, agility, automation, analytics, and security through an advanced network operating stack.

AI Value AnalystHold
Overall Rating6.7/10
Generated at:2026-03-06 16:41:03
Analysis based on 5 financial reports from 2024-09-30 to 2025-09-30, including quarterly financial data up to Q3 2025. Market price data as of 2026-03-06 close. Data completeness: Comprehensive financial metrics including liquidity ratios, leverage ratios, profitability margins, and valuation multiples.
Overview

Arista Networks demonstrates strong fundamentals with exceptional profitability, high revenue growth, and robust financial health, but current valuation metrics are rich and pricing in significant future growth, making the stock fairly valued to slightly overvalued at current levels.

Valuation
3/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Wait for a more attractive entry point below $120 or clear catalysts such as earnings beat or new contracts to support higher multiples.
  • Existing holders should maintain positions but avoid adding aggressively at current levels.

Valuation

P/E TTM
55.58
P/E LYR
65.41
P/B MRQ
15.67
P/S TTM
--
AI Analysis
  • Current valuation metrics indicate premium valuation with elevated PE ratios, high PB ratio, and rich PS ratio, suggesting the stock is fairly valued to slightly overvalued and requires continued high growth to justify current levels.
  • Dynamic PE of 65.41 and PE-TTM of 55.58 are elevated, suggesting high growth expectations are priced in
  • PB Ratio of 15.67 is high, reflecting market confidence but indicating limited margin of safety
  • PS-TTM of 20.03 confirms rich valuation, requiring continued high growth to justify
  • Earnings-based target price range is $120-$135 assuming forward PE of 50
  • PEG ratio estimate ~1.8-2.0 indicates slight overvaluation
  • Compared to historical earnings growth (~25-30%), multiples indicate premium valuation
Valuation trend

Profitability

ROE TTM
31.40%
Net margin
38.99%
Gross margin
64.06%
Total revenue
9.01B
AI Analysis
  • Arista Networks exhibits exceptional and consistent profitability with sustained high revenue growth, impressive margins, and superior returns on equity and assets well above industry averages.
  • Sustained high revenue growth with latest quarterly YoY increase of 28.49%
  • Consistent growth trend across recent quarters (29.06% in Q2 2025, 27.58% in Q1 2025)
  • Impressive gross margin at 64.51% reflecting strong pricing power
  • Net margin of 39.21% indicating excellent cost control
  • ROE-TTM of 31.56% showing superior capital allocation
  • ROA-TTM of 21.70% indicating operational efficiency well above industry averages
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--8.09%16.30%23.34%31.40%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue7.00B2.00B4.21B6.52B9.01B

Financial health

Debt/Asset
36.39%
Current ratio
3.05
Quick ratio
2.63
Cash ratio
2.63
AI Analysis
  • Arista Networks demonstrates robust financial health with strong liquidity, moderate leverage, and solid internal funding capacity supported by high profitability.
  • Current ratio of 3.25 indicating ample ability to cover immediate obligations
  • Quick ratio of 2.79 demonstrating strong short-term financial stability
  • Debt-to-asset ratio of 34.03% showing moderate leverage balancing growth with prudence
  • High profitability supports solid internal funding capacity
  • Reduced dependency on external financing due to strong financial position
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset28.83%30.28%34.07%34.03%36.39%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio4.363.933.333.253.05