What is Arista Networks, Inc. (ANET) DCF Fair Value and Intrinsic Value in 2026?

Arista Networks, Inc. (ANET) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Arista Networks, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Arista Networks, Inc. operates in the Technology sector (Computer Hardware) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Arista Networks, Inc.'s financial health rating and Piotroski F-Score?

Arista Networks, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Arista Networks, Inc. (ANET) for quarterly SEC filing thesis breaks?

LocalAlpha audits Arista Networks, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksANET

ANET

Arista Networks, Inc.Technology / Computer HardwareINTACT

Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for AI, data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications. The company offers data center, cloud and AI networking, cognitive adjacencies, and cognitive network software and services. It also provides post contract customer support services, such as technical support, hardware repair and replacement parts beyond standard warranty, bug fixes, patches, and upgrade services. The company serves a range of industries comprising internet companies, cloud service providers, financial services organizations, government agencies, media and entertainment, healthcare, oil and gas, education, manufacturing, industrial, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. Arista Networks, Inc. was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. The company was incorporated in 2004 and is headquartered in Santa Clara, California.

Share Price

$199.59

52W: $114.52 - $214.89

DCF Fair Value

$109.13

-82.9% Premium

Thesis Hub

P/E (TTM)

63.2x

ROIC

34.1%

Operating Margin

45.4%

FCF Yield

1.5%

Debt / Equity

0.15x

Piotroski Score

7/9

Altman Z-Score

2.86

Market Cap

$251.7B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($109.13)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$109.13

MOS Buy Target (-25%)

$81.85

Valuation Overlays: DCF Fair Value ($109.13) 25% MOS Buy Target ($81.85) Revised Graham ($111.52) Graham Number ($28.88)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$199.59

DCF Fair Value

$109.12

-82.9% Premium

Starting Free Cash Flow ($M)$3,892M

$100M$3,892M (Reported)$50,000M

Stage 1 Growth (Years 1-5)18.0%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$13,300M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$50.4B

PV of Terminal Value

$73.9B

Implied Enterprise Value

$124.3B

Implied Equity Value

$137.6B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$4,593	$5,419	$6,395	$7,546	$8,904	$9,305	$9,723	$10,161	$10,618	$11,096
Present Value (PV)	$4,213	$4,561	$4,938	$5,346	$5,787	$5,548	$5,319	$5,099	$4,889	$4,687

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-591.1% Premium

$28.88

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $3.16BVPS: $11.73

Revised Graham Formula-79% Premium

$111.52

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings1.5% Yield

$2.93 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $3.7BYield: 1.5%

Reverse DCF: Market Growth Expectation

HIGH BARRIER

21.3% CAGR (Next 10 Yrs)

At the current price of $199.59, the market is assuming the business will compound Free Cash Flow at 21.3% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

⚠ High expectations: Leaves minimal margin of safety for operational hiccups.

Autonomous Thesis Underwriting

Surveil ANET with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Arista Networks, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 45.4% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Arista Networks, Inc. (ANET) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Arista Networks, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Arista Networks, Inc. has an estimated DCF intrinsic fair value of $109.13 per share compared to its current market price of $199.59. This represents an estimated 82.9% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $28.88.