Market Pulse59Neutral

Arista Networks, Inc.Opportunity Rank #223(ANET) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$141.75

Last updated: May 08, 2026

Price vs Intrinsic Value

$141.75
Price
$96.16
Intrinsic Value
Overvalued by 32%MOS: $76.93

Fundamental Score

67/100
Bullish

Weighted across 6 signals

Narrative Score

80/100
Strong

No change vs previous

Trend Score

39/100
Weak

As of 2026-05-08

The intrinsic value of Arista Networks, Inc. (ANET) is estimated at $96.16 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $141.75, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes an 11.19% long-term growth rate and an 11.12% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Arista Networks, Inc. (ANET) is estimated at $96.16 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $141.75, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes an 11.19% long-term growth rate and an 11.12% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$96.16
▼ -32.16% downside
20% margin of safety: $76.93
Years: 10Growth Rate: 11.19%
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Capital Efficiency

Average Quarterly ROIC
54.49%
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

67/100
BullishWeighted across 6 signals
DCF Discount
32.2% premium to price
0
FCF Yield
3.1% trailing FCF yield
28
ROIC vs WACC
ROIC 54.5% vs WACC 8.0% (6.8x)
100
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
49.3% 5Y FCF CAGR
100
Strengths: ROIC vs WACC, Net Debt / FCF. Concerns: DCF Discount, FCF Yield.

Narrative Details

80/100
Strong
Vs 6-Month Baseline:Above Avg (79th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 100%Updated: 19h ago
Sources: 155 (136 News · 19 Analyst)
Drivers(last 30 days)
87 news sentiment+1.9
4 earnings beat+0.8
37 regulatory scrutiny+0.7
8 upgrade headlines+0.3
Analyst upgrades+0.0
18 analyst reiterations0.0

Trend Details

39/100
WeakAs of 2026-05-08311 daily bars used
Price vs 21 EMA-10.1%
21 EMA vs 50 EMA+5.2%
Price vs 50 EMA-5.4%
Price vs 21 EMA7 · -10.1%
Price vs 50 EMA25 · -5.4%
21 EMA vs 50 EMA84 · +5.2%
3M RS vs SPY35 · -3.7%
6M RS vs SPY29 · -7.9%
Distance from 52W High60 · -20.2%

Investment Coach

Updating... 1d ago
WATCHConfidence: 45%
Thesis
Arista Networks, Inc. exhibits strong fundamentals with a ROIC significantly exceeding its cost of capital and an improving narrative score, indicating operational strength and growth potential. However, the current market price is substantially above the estimated fair value, suggesting limited near-term upside.
Key Risk
The key risk is that the stock price may not correct to a more attractive valuation level, limiting investment returns despite strong fundamentals.
Signals To Watch
  • Price moves to at least a mid-teens discount to fair value.
  • ROIC remains consistently above the cost of capital in upcoming quarters.
  • Narrative score shows meaningful shifts in trend direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 11.39%5 Year CAGR: 38.81%

Free Cash Flow (in millions)

TTM202520242023202220212020201920182017201620152014201320122011
$5,569$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.