Arista Networks, Inc. (ANET) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Technology · Computer Hardware
Is Arista Networks, Inc. a safe investment right now?
Arista Networks, Inc.'s Altman Z-Score of 21.45 places it in the safe zone. Our fair value estimate is $122.80 (Overvalued). Moat rating: 3.7/5 stars.
Could Arista Networks, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 21.45 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives ANET's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.5661 | 1.2 | 0.68 |
| B · Retained Earnings / Total Assets | RE / TA | 0.4857 | 1.4 | 0.68 |
| C · EBIT / Total Assets | EBIT / TA | 0.1983 | 3.3 | 0.65 |
| D · Market Cap / Total Liabilities | MCap / TL | 31.6175 | 0.6 | 18.97 |
| E · Revenue / Total Assets | Rev / TA | 0.4631 | 1.0 | 0.46 |
How has ANET's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 73.85 | Safe |
| 2023 | 51.89 | Safe |
| 2024 | 35.89 | Safe |
| 2025 | 21.45 | Safe |
Source: Calculated from ANET's latest 10-K filing on SEC EDGAR.
What is Arista Networks, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $3.07 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $2.75 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $3.54 | 26 analysts consensus |
| Trailing P/E | 64.6x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $177.40 (26 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Arista Networks, Inc. have a durable competitive advantage?
Moat rating: 3.7/5.
What makes up ANET's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is ANET's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 31.3% | — |
| 2023 | 31.3% | Stable |
| 2024 | 29.5% | Declining |
| 2025 | 31.2% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Arista Networks, Inc.'s dividend safe?
Arista Networks, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $9.0B | $7.0B | $4.4B | Rising |
| Net Income | $3.5B | $2.9B | $1.4B | Rising |
| Free Cash Flow | $4.3B | $3.7B | $0.4B | Rising |
| Gross Margin | 64.1% | 64.1% | 61.1% | Stable |
Recent events that affect our ANET analysis
ANET earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.81. Revenue estimate: $2.62B. Our current Fair Value: $122.80 — a significant beat or miss could shift this estimate.
ANET analyst consensus: 90% bullish (27 of 30 analysts)
6 Strong Buy, 21 Buy, 3 Hold, 0 Sell, 0 Strong Sell. Consensus target: $177.40 (0.2% downside). Compare with our independent Fair Value: $122.80.
ANET filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
ANET beat EPS estimates by 8.2%
Reported EPS: $0.82 vs estimate $0.76. Earnings strength supports our Fair Value of $122.80 (30.9% below current price).
ANET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ANET filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ANET beat EPS estimates by 5.0%
Reported EPS: $0.75 vs estimate $0.71. Earnings strength supports our Fair Value of $122.80 (30.9% below current price).
ANET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ANET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ANET filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ANET beat EPS estimates by 12.4%
Reported EPS: $0.73 vs estimate $0.65. Earnings strength supports our Fair Value of $122.80 (30.9% below current price).
ANET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ANET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ANET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ANET filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ANET beat EPS estimates by 10.0%
Reported EPS: $0.65 vs estimate $0.59. Earnings strength supports our Fair Value of $122.80 (30.9% below current price).
ANET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ANET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ANET filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
ANET beat EPS estimates by 14.0%
Reported EPS: $0.65 vs estimate $0.57. Earnings strength supports our Fair Value of $122.80 (30.9% below current price).
ANET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Arista Networks, Inc.
What is Arista Networks, Inc. stock price today?
Arista Networks, Inc. (ANET) stock price is $177.73 as of the latest market close, traded on the NYSE exchange.
What does Arista Networks, Inc. do?
Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for AI, data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications.
What is Arista Networks, Inc. market cap?
Arista Networks, Inc. has a market capitalization of $223.79B, classifying it as a mega-cap stock in the Technology sector.
What sector and industry is ANET in?
Arista Networks, Inc. operates in the Technology sector, specifically within the Computer Hardware industry. It trades on the NYSE under the ticker symbol ANET.
Is ANET stock overvalued or undervalued?
Based on our valuation model, Arista Networks, Inc. trades 44.7% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $122.80
- Current Price: $177.73
- Valuation Zone: Overvalued
What is ANET stock forecast and analyst target price?
Based on 26 Wall Street analysts, the consensus price target for Arista Networks, Inc. is $177.40, implying downside of 0.2% from the current price.
- Analyst High Target: $220.00
- Analyst Low Target: $140.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Arista Networks, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Arista Networks, Inc.:
- Revenue growth (current year est.): 27.1%
- EPS growth (current year est.): 18.9%
- Revenue growth (next year est.): 21.4%
- EPS growth (next year est.): 21.1%
What are Arista Networks, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $9.0B | Rising |
| Net Income | $3.5B | Rising |
| Free Cash Flow | $4.3B | Rising |
| Gross Margin | 64.1% | Stable |
What is ANET's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 64.6x
- Forward P/E (next 12 months est.): 41.4x
- FairValueLabs Fair P/E: 40.0x
How volatile is ANET stock?
Arista Networks, Inc. has a beta of 1.48, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Arista Networks, Inc. have?
Arista Networks, Inc.'s balance sheet shows:
- Total Cash: $10.74B
- Total Debt: $90.5M
- Net Cash Position: $10.65B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Arista Networks, Inc.'s free cash flow?
Arista Networks, Inc. generated $3.39B in trailing twelve-month free cash flow (from $4.37B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Arista Networks, Inc. pay a dividend?
Arista Networks, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Arista Networks, Inc. at risk of going bankrupt?
Arista Networks, Inc.'s Altman Z-Score is 21.45, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Arista Networks, Inc. have a durable competitive advantage?
Arista Networks, Inc. scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is ANET's return on equity (ROE)?
Arista Networks, Inc.'s return on equity is 31.4%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy ANET stock?
ANET shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol ANET
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is ANET a value stock or speculative?
FairValueLabs classifies Arista Networks, Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Arista Networks, Inc.?
The current CEO of Arista Networks, Inc. is Ms. Jayshree V. Ullal.
What is ANET's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $2.75
- Forward EPS (next 12 months est.): $4.30
- Analyst consensus EPS (this year): $3.54
- Analyst consensus EPS (next year): $4.29
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
ANET analysis methodology: How we calculate fair value, Z-Scores, and moat ratings