Market Pulse50Neutral

Arista Networks, Inc.Opportunity Rank #178(ANET) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$135.88

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$135.88
Price
$84.29
Intrinsic Value
Overvalued by 38%MOS: $67.43

Fundamental Score

65/100
Bullish

Weighted across 6 signals

Narrative Score

75/100
Strong

-1 vs previous

The intrinsic value of Arista Networks, Inc. (ANET) is estimated at $84.29 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $135.88, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes an 11.09% long-term growth rate and a 10.45% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Arista Networks, Inc. (ANET) is estimated at $84.29 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $135.88, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes an 11.09% long-term growth rate and a 10.45% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$84.29
▼ -37.97% downside
20% margin of safety: $67.43
Years: 10Growth Rate: 11.09%
Want to create your own valuation? Create a free account.

Capital Efficiency

Average Quarterly ROIC
43.24%
Cost of Capital (estimated)8%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

65/100
BullishWeighted across 6 signals
DCF Discount
38.0% premium to price
0
FCF Yield
2.6% trailing FCF yield
16
ROIC vs WACC
ROIC 43.2% vs WACC 8.0% (5.4x)
100
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
43.0% 5Y FCF CAGR
100
Strengths: ROIC vs WACC, Net Debt / FCF. Concerns: DCF Discount, FCF Yield.

Narrative Details

75/100
Strong
-1 vs previousVs 6-Month Baseline:Average (40th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 89%Updated: 1h ago
Sources: 131 (120 News · 11 Analyst)
Drivers(last 30 days)
77 news sentiment+1.3
38 regulatory scrutiny+0.8
3 upgrade headlines+0.4
Margin pressure+0.0
Earnings beat+0.0
Analyst upgrades+0.0

Investment Coach

Updated 12h ago
WATCHConfidence: 45%
Thesis
Arista Networks, Inc. exhibits strong fundamentals with a ROIC significantly exceeding its cost of capital and constructive free cash flow growth, supported by a stable narrative score. However, the current market price is substantially above the estimated fair value, indicating potential overvaluation.
Key Risk
The key risk is that the stock price may not correct downward to align with the fair value, leading to continued overvaluation.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value
  • ROIC remains above cost of capital over coming quarters
  • Narrative trend shows meaningful shifts in score direction
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 11.21%5 Year CAGR: 32.97%

Free Cash Flow (in millions)

TTM202520242023202220212020201920182017201620152014201320122011
$4,491$4,491$3,740$2,068$537$1,081$750$979$527$647$153$221$128$55$30$15

How Intrinziq Estimates Fair Value

Intrinziq estimates Arista Networks, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Arista Networks, Inc.Technology

Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms. It also provides post contract customer support services, such as technical support, hardware repair and parts replacement beyond standard warranty, bug fix, patch, and upgrade services. The company serves a range of industries comprising internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, 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. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.