# Arista Networks Inc. (ANET) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Financial Services / Diversified Financial Services. Price $193.78, market value $244.4 billion.

## Valuation
- **P/E (trailing): 61.3×** (5-yr avg 43.2×, 3-yr avg 44.3×). Arista Networks Inc. trades at 61.3× trailing earnings, well above its own five-year average of 43.2×: investors are paying up relative to the company's past. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 37.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.61**. A PEG of 1.61 is in the range usually read as fairly priced for its growth.
- **Price / sales: 23.2×**. Each dollar of revenue is priced at 23.2×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 16.5×**. The shares trade at 16.5× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 52.3×**. Enterprise value is 52.3× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 2.1%** (5-yr avg 2.2%). Free cash flow equals 2.1% of the market value, in line with its five-year average of 2.2%.
- **Earnings yield: 1.6%**. The inverse of the P/E: 1.6% of the price is earned each year.

## Profitability
- **Gross margin: 63.0%**. Arista Networks Inc. keeps 63.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 43.1%**. 43.1% of revenue is left after running the business, an exceptional level.
- **Net margin: 39.0%**. 39.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 28.4%**. 28.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 34.5%**. Return on all capital, debt included, is 34.5%: comfortably above what that capital costs.
- **Return on assets: 20.8%**. Each dollar of assets produces 20.8% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 28.6%** (3-yr 27.1%/yr, 5-yr 31.2%/yr). Revenue grew 28.6% over the last year, against 31.2% a year compounded over five years.
- **EPS growth (1 yr): 23.3%** (3-yr 37.0%/yr, 5-yr 40.6%/yr). Earnings per share rose 23.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 111.7%/yr**. Free cash flow has compounded at 111.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.
- **Cash and short-term investments: $2.0 billion**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend: none**. Arista Networks Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (27 analysts). 27 analysts cover Arista Networks Inc.; the consensus is strong_buy, with an average price target of $241.82 (+25% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 37.3%** (YTD 47.9%, 3-mo 25.6%). The shares are up 37.3% over twelve months including dividends.
- **From 52-week high: -9.8%** (69.2% above the low). Trading 10% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 2.07** (volatility 55%). Beta of 2.07 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ANET · Page: https://foliofundamentals.com/stocks/anet

Not investment advice.