Arista Networks, Inc.ANET
NYSE • Technology
$147.35
P/E
53.53
PEG
2.80
FCF Yield
2.3%
Rev Growth YoY
+28.9% YoY
Gross Margin
64.1%
Health Score
9/10
D/E Ratio
—
Confidence
MEDIUM
Business Snapshot
Arista Networks designs and sells cloud networking solutions — primarily high-speed ethernet switches and routing software — for large data centres, cloud providers, and enterprise customers. The company competes in the rapidly expanding cloud and AI infrastructure networking market, where demand is driven by hyperscaler capital expenditure cycles. At a market capitalisation of $183.92B, Arista is firmly a **large-cap** technology company.
Financial Health
**Score: 9/10** Arista's financial health is exceptional across virtually every key metric. The company carries **zero debt** (Debt/Equity of 0.0x), eliminating interest rate and refinancing risk entirely...
Risk Assessment
- **VALUATION: P/E of 53.53x is more than 2x the sector average of ~25x, leaving the stock vulnerable to de-rating if growth disappoints.** - **PEG RATIO: A PEG of 2.8x indicates the market is pricing in sustained hyper-growth; any deceleration could trigger a sharp multiple compression.** - **DCF PREMIUM: Current price of $147.35 trades at an ~11.6% premium to the Python DCF estimate of $132.07, suggesting limited margin of safety.** - **TECHNICALS: MACD signal is bearish, and with the 52-week high at $164.94, the stock is 10.7% below its recent peak — suggesting near-term price momentum has softened.** - **DATA GAPS: Quarterly revenue (QoQ) figures and an average analyst price target are unavailable, limiting the ability to assess sequential growth trends and near-term upside/downside calibration.** ---...