Assessing Arista Networks – Beyond Technicals to Fundamentals

Arista Networks logged a -1.5% change during today's morning session, and is now trading at a price of $291.87 per share. The S&P 500 index moved -0.0%. ANET's trading volume is 404,483 compared to the stock's average volume of 2,672,187.

Arista Networks trades -8.59% away from its average analyst target price of $319.29 per share. The 19 analysts following the stock have set target prices ranging from $220.0 to $389.0, and on average have given Arista Networks a rating of buy.

Anyone interested in buying ANET should be aware of the facts below:

  • Arista Networks's current price is 402.8% above its Graham number of $58.05, which implies that at its current valuation it does not offer a margin of safety

  • Arista Networks has moved 85.6% over the last year, and the S&P 500 logged a change of 23.3%

  • Based on its trailing earnings per share of 7.2, Arista Networks has a trailing 12 month Price to Earnings (P/E) ratio of 40.5 while the S&P 500 average is 27.65

  • ANET has a forward P/E ratio of 32.5 based on its forward 12 month price to earnings (EPS) of $8.98 per share

  • The company has a price to earnings growth (PEG) ratio of 1.93 — a number near or below 1 signifying that Arista Networks is fairly valued compared to its estimated growth potential

  • Its Price to Book (P/B) ratio is 11.64 compared to its sector average of 1.97

  • Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.

  • Based in Santa Clara, the company has 4,023 full time employees and a market cap of $91.46 Billion.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.