Latest Ratios: P/E Ratio 74.6x · EV/EBITDA 65.3x · ROE 31.4%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $258.4B | $167.2B | $141.6B | $74.7B | $38.4B | $45.9B | $23.1B | $16.4B | $17.0B | $18.6B | $7.1B |
| Enterprise Value | $256.4B | $165.2B | $138.8B | $72.8B | $37.8B | $45.3B | $22.3B | $15.4B | $16.4B | $17.8B | $6.6B |
| P/E Ratio → | 74.61 | 47.65 | 49.57 | 35.68 | 28.36 | 54.45 | 36.32 | 19.26 | 51.95 | 44.61 | 37.81 |
| P/S Ratio | 28.69 | 18.56 | 20.22 | 12.75 | 8.77 | 15.57 | 9.96 | 6.82 | 7.92 | 11.30 | 6.28 |
| P/B Ratio | 21.16 | 13.51 | 14.17 | 10.35 | 7.86 | 11.54 | 6.95 | 5.68 | 7.95 | 11.19 | 6.40 |
| P/FCF | 60.76 | 39.31 | 38.52 | 37.35 | 85.69 | 48.25 | 32.08 | 17.36 | 35.54 | 30.18 | 64.42 |
| P/OCF | 59.10 | 38.23 | 38.18 | 36.72 | 77.93 | 45.18 | 31.41 | 17.08 | 33.86 | 29.45 | 53.92 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 18.34 | 19.82 | 12.41 | 8.62 | 15.38 | 9.61 | 6.40 | 7.63 | 10.80 | 5.81 |
| EV / EBITDA | 65.26 | 42.05 | 46.18 | 31.25 | 23.76 | 46.49 | 30.30 | 18.39 | 54.55 | 36.22 | 24.93 |
| EV / EBIT | 66.49 | 38.87 | 42.52 | 30.04 | 23.88 | 48.70 | 31.83 | 19.14 | 56.33 | 37.23 | 26.73 |
| EV / FCF | — | 38.85 | 37.77 | 36.38 | 84.29 | 47.66 | 30.94 | 16.28 | 34.26 | 28.85 | 59.62 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 64.1% | 64.1% | 64.1% | 61.9% | 61.1% | 63.8% | 63.9% | 64.1% | 63.8% | 64.5% | 64.0% |
| Operating Margin | 42.8% | 42.8% | 42.0% | 38.5% | 34.9% | 31.4% | 30.2% | 33.4% | 12.7% | 28.6% | 21.6% |
| Net Profit Margin | 39.0% | 39.0% | 40.7% | 35.6% | 30.9% | 28.5% | 27.4% | 35.7% | 15.3% | 25.7% | 16.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 31.4% | 31.4% | 33.1% | 34.5% | 30.5% | 23.0% | 20.4% | 34.1% | 17.2% | 30.6% | 19.4% |
| ROA | 21.0% | 21.0% | 23.8% | 24.9% | 21.6% | 16.1% | 14.2% | 23.7% | 11.8% | 20.2% | 12.8% |
| ROIC | 32.8% | 32.8% | 35.3% | 35.5% | 29.9% | 23.5% | 24.0% | 35.6% | 17.3% | 49.7% | 50.5% |
| ROCE | 30.4% | 30.4% | 30.4% | 33.4% | 30.2% | 21.5% | 18.5% | 26.6% | 12.4% | 29.4% | 22.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | 0.01 | 0.01 | 0.02 | 0.03 | 0.02 | 0.02 | 0.04 |
| Debt / EBITDA | — | — | — | — | 0.03 | 0.06 | 0.10 | 0.10 | 0.12 | 0.08 | 0.15 |
| Net Debt / Equity | — | -0.16 | -0.28 | -0.27 | -0.13 | -0.14 | -0.25 | -0.36 | -0.29 | -0.49 | -0.48 |
| Net Debt / EBITDA | -0.50 | -0.50 | -0.92 | -0.83 | -0.39 | -0.58 | -1.12 | -1.23 | -2.04 | -1.67 | -2.01 |
| Debt / FCF | — | -0.46 | -0.75 | -0.97 | -1.40 | -0.59 | -1.14 | -1.09 | -1.28 | -1.33 | -4.80 |
| Interest Coverage | — | — | — | — | — | — | — | — | 107.92 | 171.78 | 78.24 |
Net cash position: cash ($2.0B) exceeds total debt ($0)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.05 | 3.05 | 4.36 | 4.38 | 4.29 | 4.34 | 4.99 | 5.81 | 4.48 | 4.28 | 3.32 |
| Quick Ratio | 2.63 | 2.63 | 3.69 | 3.36 | 3.29 | 3.75 | 4.37 | 5.41 | 4.04 | 3.70 | 2.81 |
| Cash Ratio | 2.00 | 2.00 | 3.04 | 2.61 | 2.34 | 3.07 | 3.74 | 4.56 | 3.23 | 2.90 | 1.89 |
| Asset Turnover | — | 0.46 | 0.50 | 0.59 | 0.65 | 0.51 | 0.49 | 0.58 | 0.70 | 0.67 | 0.65 |
| Inventory Turnover | 1.44 | 1.44 | 1.37 | 1.15 | 1.32 | 1.64 | 1.74 | 3.55 | 2.94 | 1.91 | 1.72 |
| Days Sales Outstanding | — | 76.48 | 59.44 | 64.43 | 76.90 | 63.95 | 61.35 | 59.35 | 56.29 | 54.84 | 81.82 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.3% | 2.1% | 2.0% | 2.8% | 3.5% | 1.8% | 2.8% | 5.2% | 1.9% | 2.2% | 2.6% |
| FCF Yield | 1.6% | 2.5% | 2.6% | 2.7% | 1.2% | 2.1% | 3.1% | 5.8% | 2.8% | 3.3% | 1.6% |
| Buyback Yield | 0.6% | 1.0% | 0.3% | 0.2% | 1.7% | 0.9% | 1.7% | 1.6% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.6% | 1.0% | 0.3% | 0.2% | 1.7% | 0.9% | 1.7% | 1.6% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.2B |
Includes 30+ ratios · 14 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
Bull/bear thesis, analyst target revisions, and earnings execution.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ANET stock.
Arista Networks, Inc.'s current P/E ratio is 74.6x. The historical average is 41.8x. This places it at the 100th percentile of its historical range.
Arista Networks, Inc.'s current EV/EBITDA is 65.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 33.9x.
Arista Networks, Inc.'s return on equity (ROE) is 31.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 37.2%.
Based on historical data, Arista Networks, Inc. is trading at a P/E of 74.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Arista Networks, Inc. has 64.1% gross margin and 42.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Key Metrics
Top Statement Risk
Hyperscaler concentration and AI competition
Metrics are mathematically derived from official filings.
Premium Pricing for AI Networking Leadership
Arista trades at 74x trailing earnings and 64.8x EV/EBITDA, far above Cisco's 34x and 26x, reflecting market expectations of sustained hypergrowth, as per current multiples.
The forward P/E of 50.6x implies the market is pricing in continued double-digit revenue growth, consistent with the 37.7% YoY increase in Q2 2026. However, the PEG of 1.82 suggests that the growth premium is not excessive relative to expected earnings expansion, though it leaves little room for execution missteps. Investors should monitor whether the AI-driven demand can justify the valuation gap versus peers, especially as Nvidia's Spectrum-X enters the Ethernet market.
Margin Resilience Amid Mix Shift
Gross margin dipped to 62.9% in Q2 2026 from 65.2% a year earlier, yet operating margin expanded to 45.4%, reflecting strong operating leverage, as per reported figures.
The gross margin decline appears tied to a higher mix of hyperscaler sales, which typically carry lower hardware margins, but the software content still commands a premium. Operating margin expansion outpaced revenue growth, indicating that R&D and SG&A are scaling efficiently. Net margin of 40% underscores the earning power of the EOS software ecosystem, though stock-based compensation of roughly 10% of revenue should be considered when assessing true profitability.
Stable Returns on a Growing Base
ROIC has held steady around 8-9% over the past ten quarters, even as invested capital surged, indicating that Arista is compounding returns without dilution, based on quarterly data.
The stability of ROIC at approximately 8.9% in Q2 2026, despite a 43% increase in total assets, suggests that management is deploying capital efficiently into growth opportunities. ROE has similarly remained in the 7.5-8.6% range, reflecting a conservative balance sheet with zero debt. The asset-light model, with PPE at just 1.3% of total assets, means returns are driven by software margins rather than capital intensity, a positive sign for durability.
Working Capital Drag from Hyperscaler Timing
Cash conversion cycle lengthened to 209 days in Q2 2026 from 326 days in Q1 2024, driven by rising inventory days, as reported in financial statements.
DIO has increased from 317 days to 199 days over the period, indicating that Arista is building inventory to meet AI-related demand, which ties up cash. DSO has remained stable around 63 days, while DPO has risen to 53 days, suggesting some supplier leverage. The extended CCC reflects the lumpy nature of hyperscaler orders and may pressure near-term cash flow, though the company's robust FCF margin of 34.7% in Q2 2026 provides a buffer.
Debt-Free Balance Sheet as Strategic Moat
Arista maintains zero debt with a D/E ratio of zero, contrasting sharply with Cisco's 0.59, providing unmatched financial flexibility, as per latest balance sheet data.
The absence of debt means interest coverage is not a concern, and the company can self-fund R&D and potential acquisitions. This fortress balance sheet allows Arista to weather demand downturns without refinancing risk, a key advantage over levered peers. However, off-balance-sheet purchase commitments to contract manufacturers may represent future cash outflows, though they are not disclosed in the provided data.
Ample Liquidity Despite Declining Current Ratio
Current ratio fell to 2.96 in Q2 2026 from 5.01 in Q1 2024, but cash of $2.3 billion and strong FCF provide a solid buffer, as per reported figures.
The decline in the current ratio reflects increased inventory and deferred revenue growth, but the quick ratio of 2.59 still indicates strong short-term solvency. The company's ability to generate 34.7% FCF margin in Q2 2026 suggests it can fund operations and growth without external financing. Under severe stress, the zero-debt position and high cash reserves would likely allow Arista to maintain investment in AI networking while competitors may face constraints.
Outperforming Peers on Growth and Margins
Arista's net margin of 40% dwarfs Cisco's 21% and Ciena's 2.6%, while its ROIC of 8.9% trails Cisco's 16.6%, reflecting different capital structures, as per peer data.
Arista's superior profitability stems from its software-centric model, but its ROIC is lower than Cisco's due to a larger cash pile and lower leverage. The market rewards Arista with a higher P/E (74x vs. 34x) because of its faster growth and AI exposure, but this premium may compress if growth decelerates. The gap in ROIC is structural, not temporary, as Cisco's higher leverage boosts returns on equity, while Arista's conservative balance sheet prioritizes stability.
Misapplied P/E on a Cash-Rich Growth Model
The trailing P/E of 74x overstates valuation because it ignores Arista's $2.3 billion net cash and high-margin software revenue, which warrants a forward EV/EBITDA approach, as per current data.
Traditional P/E fails to account for the company's zero-debt balance sheet and the recurring nature of its service revenue, which is more akin to a SaaS model. A more appropriate metric is EV/EBITDA, which at 64.8x still appears rich but better reflects the enterprise value relative to cash-generating operations. Investors should also adjust for stock-based compensation to derive true cash earnings, as SBC of $120.4M in Q2 2026 represents a real economic cost that GAAP net income understates.