Latest Ratios: P/E Ratio 63.0x · EV/EBITDA 55.0x · 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 | $218.2B | $167.2B | $141.6B | $74.7B | $38.4B | $45.9B | $23.1B | $16.4B | $17.0B | $18.6B | $7.1B |
| Enterprise Value | $216.2B | $165.2B | $138.8B | $72.8B | $37.8B | $45.3B | $22.3B | $15.4B | $16.4B | $17.8B | $6.6B |
| P/E Ratio → | 63.01 | 47.65 | 49.57 | 35.68 | 28.36 | 54.45 | 36.32 | 19.26 | 51.95 | 44.61 | 37.81 |
| P/S Ratio | 24.23 | 18.56 | 20.22 | 12.75 | 8.77 | 15.57 | 9.96 | 6.82 | 7.92 | 11.30 | 6.28 |
| P/B Ratio | 17.87 | 13.51 | 14.17 | 10.35 | 7.86 | 11.54 | 6.95 | 5.68 | 7.95 | 11.19 | 6.40 |
| P/FCF | 51.31 | 39.31 | 38.52 | 37.35 | 85.69 | 48.25 | 32.08 | 17.36 | 35.54 | 30.18 | 64.42 |
| P/OCF | 49.91 | 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 | 55.04 | 42.05 | 46.18 | 31.25 | 23.76 | 46.49 | 30.30 | 18.39 | 54.55 | 36.22 | 24.93 |
| EV / EBIT | 56.07 | 42.84 | 47.15 | 32.23 | 24.74 | 49.02 | 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 | 1.6% | 2.1% | 2.0% | 2.8% | 3.5% | 1.8% | 2.8% | 5.2% | 1.9% | 2.2% | 2.6% |
| FCF Yield | 1.9% | 2.5% | 2.6% | 2.7% | 1.2% | 2.1% | 3.1% | 5.8% | 2.8% | 3.3% | 1.6% |
| Buyback Yield | 0.7% | 1.0% | 0.3% | 0.2% | 1.7% | 0.9% | 1.7% | 1.6% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.7% | 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 |
Hyper-scaler customer concentration
Based on current market data, Arista’s forward P/E of 43.42 suggests investors are pricing in significant long-term expansion, a valuation that appears elevated compared to traditional hardware peers but aligns with the company's role as a critical infrastructure provider for the burgeoning AI-driven data center market.
The current P/E multiple of 57.31 indicates that the market is assigning a software-like premium to Arista's hardware-centric business model. This valuation warrants caution, as it implies that any deceleration in hyper-scaler capital expenditure could lead to significant multiple compression given the high growth expectations embedded in the current share price.
According to reported financial statements, Arista has maintained a consistent ROIC, which fluctuated between 7.8% and 9.8% over the last ten quarters, reflecting the company's ability to generate meaningful returns on its invested capital despite the capital-intensive nature of the high-speed networking hardware industry.
The stability of these returns suggests that Arista's software-first EOS architecture provides a durable competitive moat that protects margins even as the company scales. Investors should monitor whether the shift toward AI-specific networking hardware exerts downward pressure on these returns as competition from integrated players like Nvidia intensifies.
As reported in recent filings, Arista's cash conversion cycle has remained elevated, peaking at 326 days in 2024Q1, a trend that appears largely driven by the strategic accumulation of inventory to mitigate supply chain risks associated with high-performance merchant silicon procurement for its cloud-focused product lines.
The high days-in-inventory metric suggests that Arista is prioritizing supply chain resilience over immediate working capital efficiency to ensure it can meet the volatile demand spikes of its largest customers. This strategy appears prudent given the current semiconductor supply environment, though it ties up significant cash that could otherwise be deployed for share repurchases.
Based on quarterly data, Arista maintains a strong liquidity position with a current ratio of 2.83 as of 2026Q1, providing a substantial buffer that allows the firm to navigate the inherent volatility of large-scale procurement cycles without the need for external debt financing or credit facilities.
This debt-free status is a structural advantage that distinguishes Arista from many of its hardware peers, offering management significant flexibility to fund R&D and small-scale acquisitions. The liquidity position appears more than adequate to withstand potential industry-wide digestion periods where hyper-scaler spending may temporarily pause.
The most commonly misapplied metric for Arista is the traditional EV/Sales ratio, which often obscures the underlying software-driven margin profile of the EOS ecosystem and leads analysts to incorrectly categorize the firm as a low-margin box-seller rather than a high-value-add networking software provider.
Investors should instead focus on the company's ability to maintain high gross margins and its recurring service revenue growth, which are more indicative of its true earning power. Relying on hardware-centric multiples fails to account for the high switching costs created by the EOS software, which effectively locks in customers and provides a recurring revenue stream.
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying ANET stock.
Arista Networks, Inc.'s current P/E ratio is 63.0x. 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 55.0x. 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 63.0x. 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.