GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Arista Networks Inc (NYSE:ANET) » Definitions » Cyclically Adjusted Price-to-FCF

Arista Networks (Arista Networks) Cyclically Adjusted Price-to-FCF : 109.86 (As of Apr. 29, 2024)


View and export this data going back to 2014. Start your Free Trial

What is Arista Networks Cyclically Adjusted Price-to-FCF?

As of today (2024-04-29), Arista Networks's current share price is $263.67. Arista Networks's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $2.40. Arista Networks's Cyclically Adjusted Price-to-FCF for today is 109.86.

The historical rank and industry rank for Arista Networks's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

ANET' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 51.89   Med: 84.28   Max: 127.68
Current: 110.48

During the past years, Arista Networks's highest Cyclically Adjusted Price-to-FCF was 127.68. The lowest was 51.89. And the median was 84.28.

ANET's Cyclically Adjusted Price-to-FCF is ranked worse than
85.94% of 960 companies
in the Hardware industry
Industry Median: 28.155 vs ANET: 110.48

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Arista Networks's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $1.632. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $2.40 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Arista Networks Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Arista Networks's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arista Networks Cyclically Adjusted Price-to-FCF Chart

Arista Networks Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 69.10 98.29

Arista Networks Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 69.10 90.33 80.49 82.26 98.29

Competitive Comparison of Arista Networks's Cyclically Adjusted Price-to-FCF

For the Computer Hardware subindustry, Arista Networks's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arista Networks's Cyclically Adjusted Price-to-FCF Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Arista Networks's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Arista Networks's Cyclically Adjusted Price-to-FCF falls into.



Arista Networks Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Arista Networks's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=263.67/2.4
=109.86

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Arista Networks's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Arista Networks's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=1.632/129.4194*129.4194
=1.632

Current CPI (Dec. 2023) = 129.4194.

Arista Networks Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.057 99.695 0.074
201406 0.231 100.560 0.297
201409 0.101 100.428 0.130
201412 0.125 99.070 0.163
201503 0.053 99.621 0.069
201506 0.172 100.684 0.221
201509 0.019 100.392 0.024
201512 0.516 99.792 0.669
201603 0.237 100.470 0.305
201606 0.209 101.688 0.266
201609 -0.126 101.861 -0.160
201612 0.204 101.863 0.259
201703 0.510 102.862 0.642
201706 0.236 103.349 0.296
201709 0.641 104.136 0.797
201712 0.562 104.011 0.699
201803 0.586 105.290 0.720
201806 0.416 106.317 0.506
201809 -0.381 106.507 -0.463
201812 0.896 105.998 1.094
201903 0.508 107.251 0.613
201906 0.593 108.070 0.710
201909 0.820 108.329 0.980
201912 1.012 108.420 1.208
202003 0.600 108.902 0.713
202006 0.429 108.767 0.510
202009 0.670 109.815 0.790
202012 0.565 109.897 0.665
202103 0.784 111.754 0.908
202106 0.812 114.631 0.917
202109 0.709 115.734 0.793
202112 0.675 117.630 0.743
202203 0.633 121.301 0.675
202206 0.291 125.017 0.301
202209 0.393 125.227 0.406
202212 0.095 125.222 0.098
202303 1.169 127.348 1.188
202306 1.335 128.729 1.342
202309 2.165 129.860 2.158
202312 1.632 129.419 1.632

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Arista Networks  (NYSE:ANET) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Arista Networks Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Arista Networks's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Arista Networks (Arista Networks) Business Description

Industry
Address
5453 Great America Parkway, Santa Clara, CA, USA, 95054
Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible operating system, or EOS, that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three quarters of its sales from North America.
Executives
Yvonne Wassenaar director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Jayshree Ullal director, officer: President and CEO C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Kenneth Duda officer: SVP and CTO C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
John F Mccool officer: Chief Platform Officer, C/O ARISTA NETWORKS, 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Charles H Giancarlo director 170 WEST TASMAN DRIVE, SAN JOSE X1 95134
Marc Taxay officer: SVP and General Counsel 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Ita M Brennan officer: SVP & Chief Financial Officer 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Kelly Bodnar Battles director 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Anshul Sadana officer: SVP, Customer Engineering C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Andreas Bechtolsheim director, 10 percent owner, officer: Chief Development Officer C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Ann Mather director
Lewis Chew director DOLBY LABORATORIES, INC., 1275 MARKET STREET, SAN FRANCISCO CA 94103
Daniel Scheinman director C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Nikos Theodosopoulos director C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Manuel Felix Rivelo officer: SVP, Chief Customer Officer 2312 MAGNOLIA BLVD. WEST, SEATTLE WA 98199