Last Price$86.0(7.6%)
Market Cap$113.3B
DCF value
$103.8
Undervalued (DCF value)
20.7%
Discount Rate
9.1%
Long-Term Growth Rate
4.0%
Stock quality
8/10
Great
ANET DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Dec'20 Actual | Dec'21 Actual | Dec'22 Actual | Dec'23 Actual | Dec'24 Actual | Dec'25 Estimate | Dec'26 Estimate | Dec'27 Estimate | Dec'28 Estimate | Dec'29 Estimate | Dec'30 Estimate | Dec'31 Estimate | Dec'32 Estimate | Dec'33 Estimate | Dec'34 Estimate | Dec'35 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 2,317.5 (3.9%) | 2,948.0 27.2% | 4,381.3 48.6% | 5,860.2 33.8% | 7,003.1 19.5% | 8,327.2 18.9% | 9,791.5 17.6% | 13,110.3 33.9% | 17,064.1 30.2% | 21,572.6 26.4% | 26,466.2 22.7% | 31,480.9 18.9% | 36,269.3 15.2% | 40,430.7 11.5% | 43,558.7 7.7% | 45,301.1 4.0% |
% margin | 699.7 30.2% | 924.7 31.4% | 1,527.1 34.9% | 2,257.2 38.5% | 2,944.6 42.0% | 2,751.5 33.0% | 3,235.3 33.0% | 4,332.0 33.0% | 5,638.4 33.0% | 7,128.1 33.0% | 8,745.1 33.0% | 10,402.0 33.0% | 11,984.2 33.0% | 13,359.2 33.0% | 14,392.8 33.0% | 14,968.5 33.0% |
NOPAT % effective tax rate | 600.9 25.9% | 835.3 28.3% | 1,305.7 29.8% | 1,945.3 33.2% | 2,572.2 36.7% | 2,403.5 28.9% | 2,826.1 28.9% | 3,784.0 28.9% | 4,925.2 28.9% | 6,226.5 28.9% | 7,638.9 28.9% | 9,086.3 28.9% | 10,468.4 28.9% | 11,669.5 28.9% | 12,572.3 28.9% | 13,075.2 28.9% |
% of revenue | 61.2 2.6% | 65.8 2.2% | 62.7 1.4% | 70.6 1.2% | 0.0 0.0% | 73.2 0.9% | 86.0 0.9% | 115.2 0.9% | 150.0 0.9% | 189.6 0.9% | 232.6 0.9% | 276.6 0.9% | 318.7 0.9% | 355.3 0.9% | 382.8 0.9% | 398.1 0.9% |
% of revenue | (15.4) (0.7%) | (64.7) (2.2%) | (44.6) (1.0%) | (34.4) (0.6%) | (32.0) (0.5%) | (57.3) (0.7%) | (67.4) (0.7%) | (90.2) (0.7%) | (117.4) (0.7%) | (148.4) (0.7%) | (182.1) (0.7%) | (216.6) (0.7%) | (249.5) (0.7%) | (278.2) (0.7%) | (299.7) (0.7%) | (311.7) (0.7%) |
% of revenue | (85.7) (3.7%) | (6.9) (0.2%) | (912.8) (20.8%) | (15.9) (0.3%) | 985.2 14.1% | (195.4) (2.3%) | (229.7) (2.3%) | (307.6) (2.3%) | (400.3) (2.3%) | (506.1) (2.3%) | (620.9) (2.3%) | (738.6) (2.3%) | (850.9) (2.3%) | (948.5) (2.3%) | (1,021.9) (2.3%) | (1,062.8) (2.3%) |
Free Cash Flow to Firm (FCFF) % of revenue | 561.0 24.2% | 829.5 28.1% | 410.9 9.4% | 1,965.6 33.5% | 3,525.3 50.3% | 2,224.0 26.7% | 2,615.1 26.7% | 3,501.5 26.7% | 4,557.4 26.7% | 5,761.5 26.7% | 7,068.5 26.7% | 8,407.8 26.7% | 9,686.7 26.7% | 10,798.1 26.7% | 11,633.5 26.7% | 12,098.8 26.7% |
% of FCFF used in calculation | 83.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | 9.50 | ||||||
Discount factor | 0.96 | 0.88 | 0.80 | 0.74 | 0.68 | 0.62 | 0.57 | 0.52 | 0.48 | 0.44 | ||||||
Discounted FCFF (DFCFF) | 1,767.4 | 2,294.4 | 2,815.4 | 3,358.4 | 3,891.1 | 4,375.0 | 4,769.3 | 5,035.8 | 5,144.6 | 5,079.7 |
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ANET DCF Value
DCF Value Calculation
as of Mar 03, 2025
Sum of DFCFF
% share of EV
38.5B
30.0%
Terminal Value (TV)
205.9B
Discounted TV
% share of EV
89.9B
70.0%
128.4B
8,303.5M
Total Debt
0.0
136.7B
Shares outstanding
1,316.9M
FX rate
1.0
103.8
20.7% undervalued
Equity Value Bridge
ANET DCF Financials
Revenue
$7,003.1M -> $43.6B
20.1% CAGR
Operating Income
$2,944.6M -> $14.4B
17.2% CAGR
FCFF
$3,525.3M -> $11.6B
12.7% CAGR
ANET DCF sensitivity
DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
8.0%
$110.0
$110.0
$110.0
$110.0
$110.0
8.5%
$107.0
$107.0
$107.0
$107.0
$107.0
9.1%
$101.0
$104.0
$104.0
$104.0
$104.0
9.5%
$95.0
$100.0
$102.0
$102.0
$102.0
10.0%
$87.0
$91.0
$96.0
$99.0
$99.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
8.0%
28.0%
28.0%
28.0%
28.0%
28.0%
8.5%
24.0%
24.0%
24.0%
24.0%
24.0%
9.1%
17.0%
21.0%
21.0%
21.0%
21.0%
9.5%
10.0%
16.0%
19.0%
19.0%
19.0%
10.0%
1.0%
6.0%
12.0%
15.0%
15.0%
Explore more intrinsic value tools hub for ANET
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Reverse DCF
FAQ
What is Arista Networks, Inc. DCF (discounted cash flow) valuation?
As of Mar 03, 2025, Arista Networks, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $103.8. This suggests it may be undervalued by 20.7% compared to its current price of around $86.0, using a WACC of 9.1% and growth rates of 4.0%.
What is Arista Networks, Inc. WACC?
As of Mar 03, 2025, Arista Networks, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 9.1%.
What is Arista Networks, Inc. Enterprise Value?
As of Mar 03, 2025, Arista Networks, Inc.'s Enterprise Value (EV) is approximately $128.4B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.