Arista Networks, Inc. (ANET) DCF Valuation
Two independent models estimate Arista Networks, Inc.'s fair value between $35.34 (conservative case) and $83.34 (analyst consensus).
What would today's price require?
$151.76 is justified only if free cash flow grows about +25.4% a year for the next decade — slower than the company has actually grown.
Current Price
$151.76
Fair-Value Range
$35.34 – $83.34
Market-Implied Growth
+25.4%/yr
vs +46.7% 5Y actual
ANET DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $2.6B · 1.26B shares · net cash $2.0B
Estimated Fair Value
$35.34
-76.7% vs $151.76
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $151.76; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $43.53 | $45.69 | $48.23 | $51.28 | $55.01 |
| 9.0% | $37.61 | $39.08 | $40.78 | $42.76 | $45.10 |
| 10.0% | $33.10 | $34.15 | $35.34 | $36.69 | $38.25 |
| 11.0% | $29.56 | $30.32 | $31.18 | $32.15 | $33.24 |
| 12.0% | $26.70 | $27.28 | $27.91 | $28.62 | $29.41 |
About Arista Networks, Inc.
Arista Networks, Inc. is a leading global technology firm that designs, promotes, and distributes innovative cloud networking solutions across the Americas, Europe, the Middle East, Africa, and Asia-Pacific regions. Its comprehensive product portfolio features advanced extensible operating systems, a collection of powerful network applications, and high-performance gigabit Ethernet switching and routing hardware. The company also offers robust post-contract customer support, which includes technical assistance, hardware repairs, parts replacement beyond standard warranty, and critical bug fixes, patches, and upgrades. Arista serves a diverse clientele, encompassing major internet companies, telecommunication providers, financial services organizations, government agencies, and entities in the media and entertainment sectors. Its sales strategy involves multiple channels, utilizing distributors, system integrators, value-added resellers, original equipment manufacturer partners, and a dedicated direct sales force. Established in 2004 as Arastra, Inc., the company adopted the name Arista Networks, Inc. in October 2008 and is headquartered in Santa Clara, California.
- Sector
- Technology
- Industry
- Computer Hardware
- CEO
- Jayshree V. Ullal