PEG Ratio
Higher than 81% of Technology sector peers
Updated 1616h ago
Sector Performance
81th percentileANET
1.94x
Sector Median
0.59x
Sector Avg
2.14x
Deep Analysis
The PEG ratio (price-to-earnings divided by expected earnings growth rate) at 1.94x suggests the stock's price is roughly twice its annual earnings growth rate, meaning investors are paying a premium for future growth.
This ratio sits well above the technology sector median of 0.69x, placing Arista Networks in the 75th percentile among its peers—indicating it is more expensive relative to growth than most sector companies. Trend data is not available: the year-over-year change, quarter-over-quarter change, and the last eight quarters all show N/A, so no directional insight can be drawn from historical movement. The combination of an elevated PEG level with no trend information means the metric alone signals a high valuation risk, as the stock is priced for optimistic growth expectations without past data to confirm momentum. Directly contradicting the overall BULLISH verdict, the PEG ratio implies the stock is overvalued compared to sector averages, adding a cautionary note to the positive outlook.
Frequently Asked Questions
What does the PEG Ratio tell investors about ANET?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does ANET's PEG Ratio compare to its sector?
ANET's PEG Ratio of 1.94x compares to a Technology sector median of 0.59x, placing it in the 81th percentile.
Who are ANET's closest peers by PEG Ratio?
The closest Technology peers by PEG Ratio include: MRVL (0.59x), QRVO (0.58x), GLOB (0.63x), ADI (0.49x), CRM (0.47x).
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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1.94x
Sector Median
0.59x
Sector Avg
2.14x
How ANET's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.