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Arista Networks is a computer hardware business based in the US. Arista Networks shares (ANET) are listed on the NYSE and all prices are listed in US Dollars. Arista Networks employs 2,993 staff and has a trailing 12-month revenue of around $3.9 billion.
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| Latest market close | $121.54 |
|---|---|
| 52-week range | $89.12 - $143.57 |
| 50-day moving average | $125.10 |
| 200-day moving average | $115.60 |
| Wall St. target price | $158.96 |
| PE ratio | 40.9966 |
| Dividend yield | $0 (0%) |
| Earnings per share (TTM) | $2.91 |
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The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Historical closes compared with the close of $121.54 from 2023-01-25
| 1 week (2023-01-20) | 5.57% |
|---|---|
| 1 month (2022-12-27) | 2.25% |
| 3 months (2022-10-27) | 2.02% |
| 6 months (2022-07-27) | 11.40% |
| 1 year (2022-01-23) | N/A |
|---|---|
| 2 years (2021-01-27) | -60.24% |
| 3 years (2020-01-27) | 234.97 |
| 5 years (2018-01-26) | 283.5 |
Valuing Arista Networks stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Arista Networks's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Arista Networks's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 41x. In other words, Arista Networks shares trade at around 41x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Arista Networks's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.0983. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Arista Networks's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Arista Networks's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $1.4 billion.
The EBITDA is a measure of a Arista Networks's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $3.9 billion |
|---|---|
| Operating margin TTM | 33.69% |
| Gross profit TTM | $1.9 billion |
| Return on assets TTM | 14.27% |
| Return on equity TTM | 28.23% |
| Profit margin | 29.63% |
| Book value | $14.35 |
| Market capitalisation | $36.7 billion |
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Arista Networks.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 20.62
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Arista Networks's overall score of 20.62 (as at 12/31/2018) is excellent – landing it in it in the 16th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Arista Networks is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 2.4/100
Arista Networks's environmental score of 2.4 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Arista Networks is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 10.06/100
Arista Networks's social score of 10.06 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Arista Networks is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 9.16/100
Arista Networks's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Arista Networks is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Arista Networks scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Arista Networks has, for the most part, managed to keep its nose clean.
Arista Networks was last rated for ESG on: 2019-01-01.
| Total ESG score | 20.62 |
|---|---|
| Total ESG percentile | 15.9 |
| Environmental score | 2.4 |
| Environmental score percentile | 4 |
| Social score | 10.06 |
| Social score percentile | 4 |
| Governance score | 9.16 |
| Governance score percentile | 4 |
| Level of controversy | 2 |
We're not expecting Arista Networks to pay a dividend over the next 12 months.
Arista Networks's shares were split on a 4:1 basis on 17 November 2021. So if you had owned 1 share the day before before the split, the next day you'd have owned 4 shares. This wouldn't directly have changed the overall worth of your Arista Networks shares – just the quantity. However, indirectly, the new 75% lower share price could have impacted the market appetite for Arista Networks shares which in turn could have impacted Arista Networks's share price.
Over the last 12 months, Arista Networks's shares have ranged in value from as little as $89.115 up to $143.57. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Arista Networks's is 1.2797. This would suggest that Arista Networks's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms. It also provides post contract customer support services, such as technical support, hardware repair and parts replacement beyond standard warranty, bug fix, patch, and upgrade services. The company serves a range of industries comprising internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc.
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