ANET
Arista Networks · Information Technology · Communications Equipment
$188.15
52w 114.52 – 214.89
20y monthly, adjusted
Mkt cap
$237.3B
P/E
67.8
P/FCF
56.0
FCF yield
1.8%
ROE
28.4%
Shldr yield
0.7%
div 0.0% + bb 0.7%
What today's price assumes
At $237.3B, the market is pricing in 21.8% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 34.6% per year — expectations look undemanding relative to history.
Simple DCF per-share range: $51 · $115 · $166 (4% / base / optimistic growth). An estimate, not a target.
Historical multiple lens
At its own median P/OCF of 36.5× across 12 years, ANET would trade near $126/share (25th–75th percentile: $108–$138); it trades at 54.3× today.
Assumes the historical multiple regime persists — re-ratings can be permanent.
Growth record
Compound annual growth rates from as-filed 10-K data, split-adjusted
Rev 3y
+27.1%
Rev 5y
+31.2%
Rev 10y
+26.8%
EPS 5y
+40.4%
EPS 10y
+38.6%
FCF 5y
+42.7%
FCF 10y
+34.6%
Fundamentals
Fiscal 2012–2025, from SEC filings
Revenue
Net income
Free cash flow
Diluted shares (lower is better)
Margins
Capital returned (dividends + buybacks)
Cash vs long-term debt
Quarterly
Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.
Revenue by quarter
Net income by quarter
| Quarter | Revenue | YoY | Net income | YoY | EPS | OCF |
|---|---|---|---|---|---|---|
| Q2'26 | $3.0B | +37.7% | $1.2B | +36.5% | 0.95 | $1.1B |
| Q1'26 | $2.7B | +35.1% | $1.0B | +25.7% | 0.80 | $1.7B |
| Q4'25 * | $2.5B | +28.9% | $955.8M | +19.3% | 0.74 | $1.3B |
| Q3'25 | $2.3B | +27.5% | $853.0M | +14.0% | 0.67 | $1.3B |
| Q2'25 | $2.2B | +30.4% | $888.8M | +33.6% | 0.70 | $1.2B |
| Q1'25 | $2.0B | +27.6% | $813.8M | +27.6% | 0.64 | $641.7M |
| Q4'24 * | $1.9B | +25.3% | $801.0M | +30.5% | 0.63 | $1.0B |
| Q3'24 | $1.8B | +20.0% | $748.0M | +37.2% | 0.58 | $1.2B |
| Q2'24 | $1.7B | +15.9% | $665.4M | +35.3% | 0.52 | $989.0M |
| Q1'24 | $1.6B | +16.3% | $637.7M | +46.1% | 0.50 | $513.8M |
| Q4'23 * | $1.5B | +20.8% | $613.6M | +43.7% | -3.00 | $526.5M |
| Q3'23 | $1.5B | +28.3% | $545.3M | +54.0% | 1.72 | $699.0M |
| Q2'23 | $1.5B | +38.7% | $491.9M | +64.5% | 1.55 | $434.1M |
Track record
Compound annual growth by period. For debt and share count, negative is the good direction.
| Series | 3y | 5y | 10y | 15y |
|---|---|---|---|---|
| Revenue | +27.1% | +31.2% | +26.8% | — |
| Operating cash flow | +107.0% | +42.8% | +33.8% | — |
| Free cash flow | +111.7% | +42.7% | +34.6% | — |
| EPS (diluted) | +37.0% | +40.4% | +38.6% | — |
| Equity | +36.3% | +30.1% | +31.7% | — |
| LT debt | — | — | — | — |
| Diluted shares | +0.3% | +0.2% | +1.2% | — |
| Stock price | +56.8% | +52.1% | +43.8% | — |
$100, 3 years ago
$385vs $176 in SPY
56.8% vs 20.7%/yr
$100, 5 years ago
$815vs $181 in SPY
52.1% vs 12.6%/yr
$100, 10 years ago
$3,778vs $412 in SPY
43.8% vs 15.2%/yr
The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)
Last 5 years
$14.71
$156.6B created / $10.6B retained
Last 10 years
$13.51
$176.6B created / $13.1B retained
Quality & capital discipline
Cash-based returns and how management deploys capital
Cash ROIC
35.3%
OCF ÷ (equity + debt)
OCF / EV yield
1.9%
MC vs 10× OCF
5.44
≤1 = priced under 10× OCF
Debt / FCF
—
SBC / FCF
10.3%
Owner earnings
$3.8B
OCF − capex − SBC
OE yield
1.6%
Share count 5y
+4.5%
per year; negative = buybacks
Capital intensity
2.3%
net PP&E ÷ revenue
Sales efficiency
$0.03
new PP&E per $1 new revenue, 5y
Growth engine (5y): reinvested 68.7% of operating cash flow at an incremental return of 45.6% — an organically fundable growth rate of about 31.3% per year (growth ≈ reinvestment rate × incremental ROIC).
Checklist
22 of 26 checks pass · 85%. Checks with structurally missing inputs are excluded.
Growth & Consistency
7/7
- pass
Revenue growth
31.2% · 5y CAGR ≥ 5%
- pass
EPS growth
40.4% · 5y CAGR ≥ 5%
- pass
FCF growth
42.7% · 5y CAGR ≥ 5%
- pass
Revenue rises consistently
8 of 9 · up in ≥ 7 of last 10 years
- pass
FCF consistently positive
10 of 10 · positive in ≥ 8 of last 10 years
- pass
Profitable every year
10 of 10 · net income > 0 in ≥ 8 of last 10
- pass
Cash flow keeps up with sales
42.8% vs 31.2% · OCF CAGR ≥ 0.9× revenue CAGR
Profitability
7/7
- pass
Net margin
39.0% · ≥ 8%
- pass
Operating margin
42.8% · ≥ 10%
- pass
Gross margin stable or rising
64.1% vs 61.1% · no drop > 2 pts over 3y
- pass
Return on equity
28.4% · ≥ 12%
- pass
Cash ROIC
35.3% · ≥ 12%
- pass
FCF margin
47.2% · ≥ 5%
- pass
Earnings back their cash
OCF $4.4B vs NI $3.5B · OCF ≥ net income (latest FY)
Balance Sheet
4/4
- pass
Debt payable from cash flow
no debt · LT debt ≤ 3× FCF
- pass
Cash cushion
— · cash ≥ 50% of LT debt
- pass
Leverage
— · LT debt ≤ 1.5× equity
- pass
Equity positive and compounding
$12.4B · equity > 0 and grew over ~5y
- na
Interest burden
— · interest ≤ 15% of operating income
Capital Allocation
3/4
- fail
Share count flat or shrinking
4.5% · ≤ +0.5%/yr over ~5y
- pass
Stock comp restrained
10% · SBC ≤ 15% of FCF
- pass
Distributions funded by FCF
38% · dividends + buybacks ≤ 100% of FCF
- pass
Repurchases are a habit
7 of 10 · buybacks in ≥ 5 of last 10 years
Valuation Discipline
1/4
- fail
FCF yield
1.8% · ≥ 3%
- fail
Earnings multiple
67.8 · P/E ≤ 25
- pass
Price asks less than history delivered
21.8% vs 34.6% · implied FCF growth ≤ historical FCF CAGR
- fail
Shareholder yield
0.7% · dividends + buybacks ≥ 2% of market cap
Red flags
Mechanical checks — a flag is a question to investigate, not a verdict
Shareholder dilution
Diluted share count has grown by more than 2% per year over ~5 years.
Financial data
As filed in 10-Ks; per-share figures split-adjusted. $ in millions.
| FY | Revenue | Gross profit | Op income | Net income | EPS | OCF | CapEx | FCF | Dividends | Buybacks | SBC | Cash | LT debt | Equity | Shares |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 9,006 | 5,769 | 3,856 | 3,511 | 2.75 | 4,372 | 120 | 4,252 | — | 1,603 | 439 | 1,964 | — | 12,371 | 1,276 |
| 2024 | 7,003 | 4,491 | 2,945 | 2,852 | 2.23 | 3,708 | 32 | 3,676 | — | 424 | 355 | 2,762 | — | 9,995 | 1,281 |
| 2023 | 5,860 | 3,630 | 2,257 | 2,087 | 1.65 | 2,034 | 34 | 2,000 | — | 112 | 297 | 1,939 | — | 7,219 | 1,269 |
| 2022 | 4,381 | 2,676 | 1,527 | 1,352 | 1.07 | 493 | 45 | 448 | — | 670 | 231 | 672 | — | 4,886 | 1,266 |
| 2021 | 2,948 | 1,881 | 925 | 841 | 0.66 | 1,016 | 65 | 951 | — | 412 | 187 | 621 | — | 3,979 | 1,266 |
| 2020 | 2,318 | 1,482 | 700 | 635 | 0.50 | 735 | 15 | 720 | — | 395 | 137 | 893 | — | 3,320 | 1,260 |
| 2019 | 2,411 | 1,544 | 806 | 860 | 0.67 | 963 | 16 | 947 | — | 266 | 101 | 1,111 | — | 2,895 | 1,283 |
| 2018 | 2,151 | 1,373 | 273 | 328 | 0.26 | 503 | 24 | 479 | — | 0 | 91 | 650 | — | 2,143 | 1,283 |
| 2017 | 1,646 | 1,062 | 470 | 423 | 0.34 | 632 | 15 | 616 | — | 0 | 75 | 859 | — | 1,662 | 1,253 |
| 2016 | 1,129 | 723 | 243 | 184 | 0.16 | 174 | 21 | 153 | — | — | 59 | 568 | — | 1,108 | 1,162 |
| 2015 | 838 | 544 | 149 | 121 | 0.11 | 238 | 20 | 218 | — | — | 45 | 687 | — | 788 | 1,133 |
| 2014 | 584 | 392 | 126 | 87 | 0.08 | 132 | 13 | 119 | — | — | 28 | 240 | — | 556 | 866 |
| 2013 | 361 | 239 | 66 | 42 | 0.02 | 35 | 20 | 14 | — | — | 10 | 114 | 0 | 78 | 866 |
| 2012 | 193 | 132 | 40 | 21 | 0.01 | 26 | 3 | 23 | — | — | 5 | 89 | — | 19 | 718 |
Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.