Stock analysis · Bull Rankings model

ANET analysis

Arista Networks, Inc.Computer Hardware. Scored on the same transparent model behind the daily rankings.

Data Centers
ANET
Arista Networks, Inc. · Computer Hardware
FCF$5.4bB+
Rev+30.6%A
D/E
P/E66.3xC
PEG2.30C
61.7Score
$192.34$242.2B
1Y Target$192.31Analyst consensus · 27 analysts
5Y Target$281.56Compound horizon
10Y Target$417.68Long-dated conviction
FCF$5.4bTTM
B+
FCF $5.4b — strong cash profile, above most peers
Rev+30.6%TTM YoY
A
Revenue +30.6% — hypergrowth, top decile
D/E
D/E data unavailable — neutral default
P/E66.3x
C
P/E 66.3 — expensive vs Technology peers (≈90th pctile)
PEG2.30
C
PEG 2.30 — expensive relative to growth rate

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 61.7
Quality0.76
Growth1.00
Value0.31
Why this score
  • Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
1% off the 12-month high
vs DCF fair value199% aboveest. fair value ~$64
What the price assumes: free cash flow compounding at ~45% a year for the next decade — vs the ~23% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability28% · Bgross profit ÷ total assets (Novy-Marx)
ROIC24.3% · Areturn on invested capital — not score-weighted
Why now
Computer Hardware · market cap $242.2b. Trading near 52-week high of $194.35 — momentum setup, limited technical margin of safety. Revenue growing +31% — in hypergrowth territory. 27 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $192.31 (implying -0% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $242.2b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk
Trailing P/E 66.3x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Trading within 1% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Beta 1.61 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon
1-3 yr $192.31 (27-analyst consensus) — fundamentals + valuation re-rating. 5 yr $281.56 at ~8% CAGR — compounding case rests on the competitive position widening. 10 yr $417.68 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

ANET vs the Top Picks average

PillarANETBook avgDiff
Quality0.760.83-0.07
Growth1.000.91+0.09
Value0.310.75-0.44

Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-1.8 over 34 daily scores
From 63.5 (Jun 22) → 61.7 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
10
Position size
$1,923
3.8% of portfolio
Stop price
$144.25
25% below $192.34
$ at risk if stopped
$480.85
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Arista Networks, Inc. (ANET): score, valuation & FAQ

Arista Networks, Inc. (ANET) is a Computer Hardware company that scores 61.7 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are Rev (A) and FCF (B+). On valuation, ANET sits about 199% above our discounted-cash-flow fair value — the current price implies roughly 45% annual free-cash-flow growth over the next decade.

Is ANET a good stock to buy?

Bull Rankings scores ANET 61.7 out of 100 on its quality-growth model, which is a middling reading. That is driven by Rev (A) and FCF (B+). A score is a quantitative screen of Arista Networks, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does ANET score 61.7 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). ANET earns its highest marks on Rev (A) and FCF (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is ANET overvalued or undervalued?

Based on $192.34, ANET sits about 199% above our discounted-cash-flow fair value — the current price implies roughly 45% annual free-cash-flow growth over the next decade. It trades at a 66.3x× P/E (graded C). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in ANET?

Trailing P/E 66.3x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Trading within 1% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Beta 1.61 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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