FCF Yield
Higher than 46% of Technology sector peers
Updated 1904h ago
Sector Performance
46th percentileANET
2.6%
Sector Median
2.7%
Sector Avg
-0.2%
Deep Analysis
Free cash flow yield measures the cash a company generates per dollar of its stock price—a 2.6% yield means for every $100 invested, Arista produces $2.60 in free cash flow annually.
This sits below the sector median of 3.3%, placing Arista in the 38th percentile among technology peers, indicating it is less attractive on this metric than the typical sector stock. The year-over-year change, quarter-over-quarter change, and eight-quarter trend are all reported as N/A, so no directional information is available from historical data. With a below-median yield and no trend to assess, the current level suggests a relatively expensive valuation compared to peers, which increases the risk of lower future returns from this cash-flow perspective. This metric contradicts the overall BULLISH verdict, as the yield is below the sector median and at a low percentile rank, signaling less margin of safety for investors seeking cash return.
Frequently Asked Questions
What does the FCF Yield tell investors about ANET?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does ANET's FCF Yield compare to its sector?
ANET's FCF Yield of 2.6% compares to a Technology sector median of 2.7%, placing it in the 46th percentile.
Who are ANET's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: AMBA (2.1%), NVDA (2.0%), MODN (2.0%), APP (1.7%), AVGO (1.5%).
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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2.6%
Sector Median
2.7%
Sector Avg
-0.2%
How ANET's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.