Arista Networks, Inc. ANET

Name: ANET Crucible Score
Creator: Kaladin Capital Intelligence

TechnologyComputer HardwareNYSE📅 Scored March 18, 2026

Price at analysis: $135.01

Crucible Score

59.9

C+

Quality × Value Composite

KQI — Quality

74.2

B+

Fundamental Quality Index

KVI — Value

42.3

Valuation Attractiveness Index

Crucible Verdict — ANET

Arista Networks delivers exceptional financial quality and maintains a strong market position in networking infrastructure, but the stock trades at a significant premium that overshadows its moderate growth prospects. ANET's 97% earnings beat rate under longtime CEO Jayshree Ullal demonstrates operational excellence, yet insider selling signals caution at current valuations. The quality-value disconnect suggests patience until a better entry point emerges.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

92.7

Growth Profile

46.3

Moat Durability

77.5

Management Effectiveness⚠

75.1

Diversification & Resilience⚠

49.0

Market Position

81.0

Weakest dimension: Growth Profile (46.3)

◆ KVI Value Dimensions

DCF Margin of Safety

52.4

FCF Yield & Cash Returns

30.0

Relative Valuation

28.1

Growth-Adjusted Value

61.9

Historical Valuation

33.6

Macro Context

38.4

◆ DCF Valuation Scenarios

Bear Case

$89.52

Base Case

$139.87

Bull Case

$210.45

Price at Analysis

$135.01

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$89.52	10.0%	38.0%	12.2%
🟢 Base	$139.87	14.0%	42.0%	11.4%
🟢 Bull	$210.45	18.0%	46.0%	10.7%

Key Assumptions: WACC derived via CAPM using 4.39% risk-free rate, 1.46 beta, and 5.25% ERP (base), yielding ~11.4% base WACC; bear/bull scenarios shift ERP by +/-50bps. Revenue growth anchored on 5-year CAGR of ~25% but decelerating materially given scale; FCF conversion remains very high (~45%+ of revenue) given minimal capex intensity (~1.3% historically) and zero debt. Tax rate normalized to 14.5% reflecting recent effective rates, and working capital needs remain modest given Arista's asset-light model.

◆ Financial Snapshot

Profitability

Gross Margin64.1%

Operating Margin42.8%

Net Margin39.0%

ROIC22.6%

ROE24.1%

Balance Sheet

Balance SheetCR: 3.05

Cash ConversionFCF/EPS: 1.21x

Capital IntensityCapex/Rev: 1.3%

Altman Z-Score16.90 (Safe)

Piotroski F-Score5/9 (Mixed)

Growth

Revenue CAGR-25.7% CAGR (suspect)

Earnings CAGR-19.6% CAGR

Growth ConsistencyCV: 2.63

Segment Breadth2/2 growing (100%)

Quarterly TrendMargin↓, WC↓

Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$179.09

Analysts Covering (Quarter)11

Avg Target (Last Year)$170.06

Analysts (Year)18

Leadership & Governance

CEOJayshree Ullal · 18 years

CEO Ownership3.4%

Insider ActivitySelling

Capital AllocationROIC 22.6% vs WACC 12.5%

Earnings Beat Rate97% (21/22)

◆ Company Profile

Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.

CEO

Jayshree V. Ullal

Employees

4412

Headquarters

Santa Clara, CA, US

IPO Date

June 6, 2014

Exchange

NYSE

Website

arista.com

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Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 18, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.