US Equities Analysis

ANET — Arista Networks

Research evidence pack

Source-backed valuation visuals

Loading verified snapshot
Loading verified market, valuation, and statement data.

2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 42.74%
Profit Margins 38.32%
Return on Equity 31.52%
Return on Assets 14.36%
Free Float 1.04B
Short Int % Utilisation 2.04%

2.2 Growth

Metric Value
Revenue Growth 35.1%
Free Cash Flow 4.36B
EBITDA 42.18 (Ratio)
Enterprise Value 178.74B
EV/Revenue 18.41
EV/EBITDA 42.18

Revenue growth of 35.1% places the company in a high-growth category.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 68.23%
Risk / Std Dev (Ann.)* 54.24%
1-Year Price Return* 44.81%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $198.82
52-Week Range $114.52 – $214.89
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $9.01B
Prior annual revenue $7.00B
EBIT $3.86B
Tax rate 17.40%
NOPAT = EBIT × (1 − tax rate) $3.19B
Forecast start-growth basis 15.00%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $3.19B
Add: depreciation & amortisation $72.60M
Less: capital expenditure -$119.50M
Less/(add): working-capital cash-flow movement $687.80M
Current unlevered FCFF $3.83B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 15.00% $3.66B $83.49M -$137.43M $790.97M $4.40B $4.13B
2 11.88% $4.10B $93.40M -$138.66M $884.90M $4.94B $4.08B
3 8.75% $4.46B $101.58M -$134.39M $962.33M $5.39B $3.92B
4 5.62% $4.71B $107.29M -$124.62M $1.02B $5.71B $3.65B
5 2.50% $4.82B $109.97M -$109.97M $1.04B $5.87B $3.31B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.61
Cost of equity 13.59%
Pre-tax cost of debt 7.71%
WACC 13.59%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $54.20B
Implied terminal EV / EBITDA 9.11x
Terminal value as % of enterprise value 60.03%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $19.08B
Present value of terminal value $28.66B
Indicated enterprise value $47.74B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $47.74B
Less: gross interest-bearing debt $0.00
Add: cash and equivalents $10.74B
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $58.48B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 1,275,700,000.00
Share-count basis reported diluted weighted-average shares
Current market price $192.91
DCF indicative value per share $45.84
Indicative value vs. market price -76.24%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 3/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:22:33.376324 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

us-equity stock equity anet information-technology communications-equipment nasdaq