Arista Networks Stock Return On Equity
| ANET Stock | USD 246.09 11.10 4.32% |
Arista Networks fundamentals help investors to digest information that contributes to Arista Networks' financial success or failures. It also enables traders to predict the movement of Arista Stock. The fundamental analysis module provides a way to measure Arista Networks' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Arista Networks stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.29 | 0.35 |
Arista | Return On Equity |
Arista Networks Company Return On Equity Analysis
Arista Networks' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Arista Networks Return On Equity | 0.34 |
Most of Arista Networks' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Arista Networks is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Arista Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Arista Networks is extremely important. It helps to project a fair market value of Arista Stock properly, considering its historical fundamentals such as Return On Equity. Since Arista Networks' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Arista Networks' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Arista Networks' interrelated accounts and indicators.
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Arista Return On Equity Historical Pattern
Today, most investors in Arista Networks Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Arista Networks' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Arista Networks return on equity as a starting point in their analysis.
Arista Networks Return On Equity |
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Arista Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Arista Networks has a Return On Equity of 0.3449. This is 102.87% lower than that of the Communications Equipment sector and significantly higher than that of the Information Technology industry. The return on equity for all United States stocks is notably lower than that of the firm.
Arista Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Arista Networks' direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Arista Networks could also be used in its relative valuation, which is a method of valuing Arista Networks by comparing valuation metrics of similar companies.Arista Networks is currently under evaluation in return on equity category among related companies.
Arista Networks ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Arista Networks' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Arista Networks' managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Arista Fundamentals
| Return On Equity | 0.34 | ||||
| Return On Asset | 0.17 | ||||
| Profit Margin | 0.36 % | ||||
| Operating Margin | 0.42 % | ||||
| Current Valuation | 76.11 B | ||||
| Shares Outstanding | 312.63 M | ||||
| Shares Owned By Insiders | 18.55 % | ||||
| Shares Owned By Institutions | 70.38 % | ||||
| Number Of Shares Shorted | 2.87 M | ||||
| Price To Earning | 16.73 X | ||||
| Price To Book | 11.75 X | ||||
| Price To Sales | 14.47 X | ||||
| Revenue | 5.86 B | ||||
| Gross Profit | 2.68 B | ||||
| EBITDA | 2.31 B | ||||
| Net Income | 2.09 B | ||||
| Cash And Equivalents | 2.9 B | ||||
| Cash Per Share | 9.54 X | ||||
| Total Debt | 65.52 M | ||||
| Debt To Equity | 0.01 % | ||||
| Current Ratio | 3.70 X | ||||
| Book Value Per Share | 23.12 X | ||||
| Cash Flow From Operations | 2.03 B | ||||
| Short Ratio | 1.06 X | ||||
| Earnings Per Share | 6.59 X | ||||
| Price To Earnings To Growth | 2.32 X | ||||
| Target Price | 291.59 | ||||
| Number Of Employees | 4.02 K | ||||
| Beta | 1.11 | ||||
| Market Capitalization | 80.39 B | ||||
| Total Asset | 9.95 B | ||||
| Retained Earnings | 5.11 B | ||||
| Working Capital | 6.48 B | ||||
| Current Asset | 974.33 M | ||||
| Current Liabilities | 235.01 M | ||||
| Net Asset | 9.95 B |
About Arista Networks Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Arista Networks's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Arista Networks using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Arista Networks based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Arista Networks Investors Sentiment
The influence of Arista Networks' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Arista. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Arista Networks' public news can be used to forecast risks associated with an investment in Arista. The trend in average sentiment can be used to explain how an investor holding Arista can time the market purely based on public headlines and social activities around Arista Networks. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Arista Networks' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Arista Networks' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Arista Networks' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Arista Networks.
Arista Networks Implied Volatility | 76.24 |
Arista Networks' implied volatility exposes the market's sentiment of Arista Networks stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Arista Networks' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Arista Networks stock will not fluctuate a lot when Arista Networks' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Arista Networks in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Arista Networks' short interest history, or implied volatility extrapolated from Arista Networks options trading.
Pair Trading with Arista Networks
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Arista Networks position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arista Networks will appreciate offsetting losses from the drop in the long position's value.Moving together with Arista Stock
| 0.71 | PSTG | Pure Storage Financial Report 29th of May 2024 | PairCorr |
Moving against Arista Stock
| 0.54 | CPSH | Cps Technologies Tech Boost | PairCorr |
| 0.49 | G | Genpact Limited Financial Report 8th of May 2024 | PairCorr |
| 0.45 | AEHR | Aehr Test Systems Financial Report 11th of July 2024 | PairCorr |
The ability to find closely correlated positions to Arista Networks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arista Networks when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Arista Networks - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Arista Networks to buy it.
The correlation of Arista Networks is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Arista Networks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arista Networks moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Arista Networks can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Arista Networks Piotroski F Score and Arista Networks Altman Z Score analysis. For more information on how to buy Arista Stock please use our How to Invest in Arista Networks guide.Note that the Arista Networks information on this page should be used as a complementary analysis to other Arista Networks' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Complementary Tools for Arista Stock analysis
When running Arista Networks' price analysis, check to measure Arista Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arista Networks is operating at the current time. Most of Arista Networks' value examination focuses on studying past and present price action to predict the probability of Arista Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arista Networks' price. Additionally, you may evaluate how the addition of Arista Networks to your portfolios can decrease your overall portfolio volatility.
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Is Arista Networks' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arista Networks. If investors know Arista will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arista Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.418 | Earnings Share 6.59 | Revenue Per Share 18.943 | Quarterly Revenue Growth 0.208 | Return On Assets 0.1691 |
The market value of Arista Networks is measured differently than its book value, which is the value of Arista that is recorded on the company's balance sheet. Investors also form their own opinion of Arista Networks' value that differs from its market value or its book value, called intrinsic value, which is Arista Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arista Networks' market value can be influenced by many factors that don't directly affect Arista Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Arista Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arista Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arista Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.