ANET · Intrinsic value
Is Arista Networks, Inc. (ANET) overvalued or undervalued?
Arista Networks, Inc. (ANET) trades at the delayed market price of $185.90 a share. That price already implies revenue growth of more than 25%/yr. TickerWorth's fair value is $80.58 a share (131% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is ANET overvalued?
- Fair value
- $80.58
- Market price
- $185.90
- Downside to fair value
- 56.7%
- Verdict
- 131% above fair value
Reverse DCF, on our cash-flow model rather than the fair value above: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is ANET's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Technology companies in US
Its strongest point: a profitable, high-quality business. Its weakest: looks expensive on the numbers.
- Value · 22 of 100
Cheaper than 22% of Technology companies in US
- Price vs worth · 5 of 100
- Quality · 81 of 100
More profitable than 81% of Technology companies in US
- Financial health · 87 of 100
Financially stronger than 87% of Technology companies in US
- Growth · 53 of 100
Growing faster than 53% of Technology companies in US
- Momentum · 60 of 100
Outperformed 60% of Technology companies in US over the past year
Confidence: Medium confidence · Scored
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ANET DCF valuation: what the price assumes
At a recent price of $185.90, Arista Networks, Inc. (ANET) trades 131% above TickerWorth's blended fair value of $80.58 per share. For this company that blend leans on peer multiples: our discounted-cash-flow model holds margins flat and fades growth toward a long-run rate, which systematically understates a business growing this fast, so its figure (about $40.28) is shown as a reference beside the range rather than blended into it. Our estimate sits below the market — read that as a statement about how the market prices ANET against comparable companies, not as a finding that it is overvalued on cash flow. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts Arista Networks, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 12.8%, with a long-run terminal growth rate of 2.5%. About 64% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — ANET would need sustained revenue growth of more than 25%/yr to justify today's price, against about 16.6% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, ANET's modeled DCF value ranges from about $33.40 to $51.50 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Arista Networks, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of ANET's intrinsic value. Figures update as new filings and prices come in.
Every input behind ANET's DCF
| Input | Value |
|---|---|
| Base-year revenueArista Networks, Inc. FY2025 10-K (accession 0001596532-26-000013): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $9,005,700,000 |
| Base EBIT marginArista Networks, Inc. FY2025 10-K (accession 0001596532-26-000013): us-gaap:OperatingIncomeLoss 3,856,100,000 / revenue 9,005,700,000 = 42.82%, FY2025. | 42.8% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 30% → 24% → 17% → 10% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.60 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesArista Networks, Inc. FY2025 10-K (accession 0001596532-26-000013): WeightedAverageNumberOfDilutedSharesOutstanding = 1,275,700,000 shares, FY2025. | 1,276M |
| Market priceDelayed quote · as of 2026-10-19 17:04 UTC | $185.90 |
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What does Arista Networks, Inc. do?
What does it 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. It operates in the Computer Hardware industry (Technology sector), headquartered in United States. The company employs roughly 5,115 people.
How does it make money?
The business turns $10.5B in annual revenue into profit. Out of every $100 of sales, about $45 is left as operating profit (operating margin of 45.4%), after a 63% gross margin on the products/services it sells. After all costs, taxes and interest, 38.4% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: comfortably covers its short-term bills (3.0× current ratio), and is currently profitable.
ANET insider trading
We have no recent SEC Form 4 insider filings on file for Arista Networks, Inc.. Form 4 covers US-listed companies only.
Common questions
What is ANET's intrinsic value?
TickerWorth's blended fair value for Arista Networks, Inc. (ANET) is $80.58 per share, versus a market price of $185.90 (131% above fair value).
Is ANET overvalued or undervalued?
Our cash-flow model understates a business growing this fast, so we don't call ANET overvalued on it. Against a blend that leans on peer multiples, the price of $185.90 sits 131% above our estimate. This is an educational estimate, not advice.
What discount rate is used for ANET?
A WACC of 12.8% and a terminal growth rate of 2.5%.
Is Arista Networks stock undervalued?
TickerWorth's fair value for Arista Networks, Inc. (ANET) is $80.58 against a market price of $185.90. Our read: 131% above fair value. This is a model estimate, not investment advice.
Arista Networks (ANET) DCF valuation and fair value
Our fair value for Arista Networks, Inc. (ANET) is $80.58, built on a 12.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Arista Networks stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $185.90. A model estimate, not investment advice.
Arista Networks (ANET) insider trading
We have no recent SEC Form 4 insider filings on file for Arista Networks, Inc. (ANET). Form 4 covers US-listed companies only.
Stocks below our fair value instead
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.