Arista Enterprise Value Multiple from 2010 to 2024

ANET Stock  USD 288.41  9.42  3.16%   
Arista Networks Enterprise Value Multiple yearly trend continues to be comparatively stable with very little volatility. Enterprise Value Multiple is likely to outpace its year average in 2024. From the period from 2010 to 2024, Arista Networks Enterprise Value Multiple quarterly data regression had r-value of (0.67) and coefficient of variation of  68.98. View All Fundamentals
 
Enterprise Value Multiple  
First Reported
2010-12-31
Previous Quarter
30.73942852
Current Value
39.62
Quarterly Volatility
31.00986632
 
Credit Downgrade
 
Yuan Drop
 
Covid
Check Arista Networks financial statements over time to gain insight into future company performance. You can evaluate financial statements to find patterns among Arista main balance sheet or income statement drivers, such as Depreciation And Amortization of 74.2 M, Selling General Administrative of 67.1 M or Selling And Marketing Expenses of 419 M, as well as many exotic indicators such as Short Term Coverage Ratios of 20.18, Price Earnings Ratio of 63.6 or Price To Sales Ratio of 11.94. Arista financial statements analysis is a perfect complement when working with Arista Networks Valuation or Volatility modules.
  
This module can also supplement Arista Networks' financial leverage analysis and stock options assessment as well as various Arista Networks Technical models . Check out the analysis of Arista Networks Correlation against competitors.
For more information on how to buy Arista Stock please use our How to Invest in Arista Networks guide.

Latest Arista Networks' Enterprise Value Multiple Growth Pattern

Below is the plot of the Enterprise Value Multiple of Arista Networks over the last few years. It is Arista Networks' Enterprise Value Multiple historical data analysis aims to capture in quantitative terms the overall pattern of either growth or decline in Arista Networks' overall financial position and show how it may be relating to other accounts over time.
Enterprise Value Multiple10 Years Trend
Slightly volatile
   Enterprise Value Multiple   
       Timeline  

Arista Enterprise Value Multiple Regression Statistics

Arithmetic Mean44.95
Geometric Mean37.34
Coefficient Of Variation68.98
Mean Deviation24.50
Median30.74
Standard Deviation31.01
Sample Variance961.61
Range82.814
R-Value(0.67)
Mean Square Error571.81
R-Squared0.45
Significance0.01
Slope(4.64)
Total Sum of Squares13,463

Arista Enterprise Value Multiple History

2024 39.62
2023 30.74
2022 23.0
2021 44.61
2020 28.56
2019 18.39
2018 22.67

About Arista Networks Financial Statements

There are typically three primary documents that fall into the category of financial statements. These documents include Arista Networks income statement, its balance sheet, and the statement of cash flows. Arista Networks investors use historical funamental indicators, such as Arista Networks's Enterprise Value Multiple, to determine how well the company is positioned to perform in the future. Although Arista Networks investors may use each financial statement separately, they are all related. The changes in Arista Networks's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Arista Networks's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. We offer a historical overview of the basic patterns found on Arista Networks Financial Statements. Understanding these patterns can help to make the right decision on long term investment in Arista Networks. Please read more on our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2024
Enterprise Value Multiple 30.74  39.62 

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

    
  44.33  
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

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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.
Pair CorrelationCorrelation Matching
When determining whether Arista Networks is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Arista Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Arista Networks Stock. Highlighted below are key reports to facilitate an investment decision about Arista Networks Stock:
Check out the analysis of Arista Networks Correlation against competitors.
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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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
6.58
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.